President Donald Trump announced that the United States will impose a 50 percent tariff on copper pipes and wiring. However, the specifics of the tariff were not as extensive as anticipated, omitting copper input materials like ores, concentrates, and cathodes. Following the announcement, U.S. Comex copper futures dropped by 19.5 percent, erasing a premium they held over the London global benchmark. The initial hint of the tariff came in early July, suggesting it would encompass various forms of copper, from cathodes to finished products. Contrary to expectations, the White House proclamation clarified that the tariff, effective starting Friday, would only target semi-finished copper products and items heavily reliant on copper in their manufacturing processes.
President Trump justified the tariff by stating that the influx of copper imports poses a threat to national security. Notably, the tariffs will not apply to copper scrap, concentrates, mattes, cathodes, and anodes, major products of copper mines and smelters. This move is seen as advantageous to Chile and Peru, significant copper-producing countries globally. Gracelin Baskaran, director of the critical minerals security program at the Center for Strategic and International Studies, remarked that the announced copper tariffs were less severe than initially feared by the markets.
The decision followed a U.S. investigation under Section 232, initiated by Trump in February. The report, submitted by Commerce Secretary Howard Lutnick on June 30, allowed the president to levy tariffs on goods deemed to jeopardize national security. Trump hinted at the possibility of imposing additional tariffs and requested an update on the domestic copper market by June 2026. Subsequently, he will consider imposing a phased universal import duty on refined copper, starting at 15 percent in 2027 and escalating to 30 percent in 2028.
In addition to the tariffs, measures to bolster the domestic copper industry include mandating that 25 percent of high-quality scrap produced in the U.S. be sold within the country. While Freeport-McMoRan, the largest U.S. copper producer, reserved comments pending a detailed review of the order, Chile’s Codelco, the world’s largest copper producer, welcomed the exclusion of cathodes as beneficial to their operations. Companies like BHP and Antofagasta, major players in the copper industry, did not immediately respond to requests for comments on the tariff implications.