Trump Proposes 50% Tariff on Copper Imports

Copper futures in the U.S. hit record highs this week, jumping more than 10% in a single day, the biggest one day gain in 30 years. But the rally didn’t last.

After briefly increasing on the news, prices started falling globally. Contracts on the London Metal Exchange and Shanghai Futures Exchange slipped sharply as traders reacted to a major policy shift.

Trump Proposes 50% Tariff on Copper Imports

U.S. President Donald Trump announced a 50% tariff on all copper imports, aiming to reduce U.S. dependence on foreign metals.

Commerce Secretary Howard Lutnick said the tariff will likely go into effect by the end of July or August 1. The idea is to bring copper home to boost domestic production of copper, which is used in electric vehicles, defense, power grids, and electronics.

Industry Shocked by the Sudden Move

Analysts were surprised not just by the tariff, but by its size. A 25% tariff had been discussed, but a 50% rate came as a shock.

               “The announcement is like a loud thunder in the middle of the night,” said a Beijing based metals analyst.

The move is likely to push up costs for U.S. manufacturers that rely on imported copper, especially in sectors like clean energy and defense.

Ripple Effects on Global Trade

The copper tariff adds more pressure to already fragile global supply chains. It could lead to higher prices for U.S. consumers and create tension with top copper exporting countries, including Chile, Peru, and China.

This decision also risks retaliation from other nations and may disrupt long-term contracts and trade flows.

Pharma Tariffs Also on the Table

Trump didn’t stop with copper. He also floated a 200% tariff on imported pharmaceuticals, though that would come after a one year grace period.

This could heavily impact countries like India, a major supplier of generic drugs to the U.S.

Copper Bottom Line

The 50% copper tariff proposal signals a major shift in U.S. trade policy. It may bring some production back home, but it also raises the risk of supply shocks, higher prices, and international retaliation, especially in key sectors like energy and health care.