President Trump imposes 50% tariff on precious metal, making it the most expensive in the world
On July 8, US President Donald Trump announced that he would impose a 50% tax on imported copper. Immediately after the announcement, copper prices in the US increased by more than 13% to a record high of 5.69 USD/pound, the strongest increase in a day since 1989.
The US announced a 50% tax on imported copper.
On July 8, US President Donald Trump announced that he would impose a 50% tax on imported copper. This was a surprise move in a strategy to protect domestic production, along with a signal that the tax would be expanded to other areas. Although the official implementation date has not been announced, this announcement immediately shocked the market.
Immediately after the above announcement, copper prices in the US increased by more than 13% in the trading session on July 8, reaching a record of 5.69 USD/pound, the strongest increase in one day since 1989.
Meanwhile, copper prices on the London Stock Exchange increased slightly by 0.3%. The price gap between the US and the world is widening, putting pressure on both US businesses and consumers.
Copper is an essential metal used in electronics, machinery, appliances and infrastructure. Sharp price increases from tariffs could make a range of products from refrigerators to cars more expensive.
The costs are likely to be passed on to consumers. Some investors warn that higher costs could also slow down public infrastructure projects and hurt the labor market.
While the government wants to encourage domestic copper production, experts say it is difficult to do so immediately. Expanding capacity will take years and require large investments. In addition, the process of obtaining new mining permits is lengthy. As a result, in the short term, the United States will remain largely dependent on copper imports from Chile, Canada, Peru and Mexico.
The Trump administration has been conducting a national security investigation into copper imports since February, a precursor to the current decision. Some companies have increased their inventory imports from Europe and Asia to counter the risk.
However, the exact timing of the tariffs remains unclear and the possibility of exemptions or adjustments to the tariffs remains open. US Commerce Secretary Howard Lutnick said the tariffs could be implemented in late July or early August.
The difference in copper prices between the US and the world is up to 2,600 USD/ton.
According to Benchmark Mineral Intelligence, the price difference between US and world copper has increased by 138%, surpassing the $2,600/ton mark. If the 50% tax is implemented, US consumers could have to pay up to $15,000/ton of copper, while prices in other countries are only around $10,000. This is an unprecedented difference in the modern history of the copper market.
As copper prices rise, some industries may switch to aluminum, a cheaper material for some applications. However, aluminum is heavier and has higher long-term maintenance costs. This puts copper demand at risk of a sharp decline, especially when prices are volatile and domestic production cannot meet demand immediately.
Peter Chase, an expert at the German Marshall Fund, warned that rising copper costs could affect plans to develop AI technology infrastructure in the US.
