President Donald Trump has announced a 50 per cent tariff on copper imports into the United States, suggesting further sector-specific duties are forthcoming. The announcement, made during a Cabinet meeting at the White House, did not specify when the copper tariff would take effect. Trump also indicated plans to impose tariffs “at a very, very high rate, like 200%,” on pharmaceutical imports, giving pharmaceutical companies up to 18 months to begin producing their products in the US before the tariffs take effect.
Following Trump’s announcement, copper prices surged to a record high. Comex traded copper futures rose 9.5 per cent to $US5.50 a pound in New York, after earlier hitting $US5.8955. Shares of copper miner Freeport-McMoRan also saw a 5% increase, as investors anticipate domestic producers will benefit from the new tariff. Copper is the third-most-consumed metal globally, with the US importing nearly half of its copper, primarily from Chile.
Commerce Secretary Howard Lutnick stated that the investigation into potential copper tariffs on national security grounds, ordered by Trump in late February, has concluded. Lutnick expects Trump to sign a proclamation implementing the copper tariff by the end of July, aligning it with existing US duties on steel and aluminum imports. These announcements are separate from the “reciprocal” tariffs unveiled in early April, which imposed a 10% duty on imports from most countries.
The potential for copper tariffs has already impacted markets, with a surge of copper imports into the US this year. Supply disruptions in Peru and other key supply regions, along with a prolonged mine closure in Panama, are also contributing to market tightness, with analysts projecting deficits in both 2025 and 2026. TD Securities noted much of the rise so far this year in prices reflected anticipation of US tariffs. Codelco, Chile’s state-owned copper company, could be one of the most affected producers.
