U.S. President Announces 50% Tariff on Copper Imports
U.S. President Donald Trump has officially announced that a new 50% tariff on copper imports will take effect on August 1, 2025. This decision was made following a national security assessment, as stated in a post on Truth Social.
“I am announcing a 50% TARIFF on Copper, effective August 1, 2025, after receiving a robust NATIONAL SECURITY ASSESSMENT,” Trump wrote. He emphasized the critical role of copper in various sectors, including semiconductors, aircraft, ships, ammunition, data centers, lithium-ion batteries, radar systems, missile defense systems, and even hypersonic weapons. According to Trump, copper is the second most used material by the Department of Defense.
The announcement led to an immediate increase in copper prices, with a 2.62% jump after the news broke. This follows a significant 13.12% surge in the previous session. However, three-month copper futures on the London Metal Exchange fell by 1.63% at $9,630.50 per ton as of 9:20 a.m. Singapore time, indicating a growing premium between U.S. copper and global benchmarks.
Earlier on Tuesday, U.S. Commerce Secretary Howard Lutnick mentioned during an appearance on CNBC’s Power Lunch that the Trump administration aims to bring “copper production home.” He also highlighted that this move aligns the copper tariffs with existing U.S. duties on steel and aluminum, which Trump increased to 50% in early June.
Key Players in the U.S. Copper Market
Investors are closely watching several top U.S. copper producers. These include:
- Freeport-McMoRan (NYSE: FCX)
- Southern Copper (SCCO)
- Ero Copper (ERO)
- Teck Resources (TECK)
- Hudbay Mining (HBM)
- Rio Tinto (RIO)
- BHP (BHP)
Additionally, investors may consider exchange-traded funds (ETFs) such as:
- CPER
- COPX
- OTC: JJCTF
Impact on Freeport-McMoRan
Freeport-McMoRan, one of the largest copper producers in the world, has been a key player in the market. Recent reports indicate that the company is experiencing increased volatility, as it becomes disconnected from spot prices. Analysts suggest that this could lead to more fluctuations in the near future.
Another report highlights that the strength in copper prices has improved the valuation case for Freeport-McMoRan. This has resulted in a rating upgrade for the company. Furthermore, analysts believe that Freeport-McMoRan is well-positioned to benefit from an anticipated expansion in the copper shortage.
JPMorgan has rated Freeport-McMoRan as a top pick for investors looking to gain exposure to the copper market. The company’s performance has also been influenced by recent developments, such as the record high reached by Comex copper after Trump pledged the 50% tariffs on copper imports.
