This article was originally published by Ava Grace at Natural News.
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- Copper prices hit historic highs after U.S. President Donald Trump announced a 50 percent tariff on imports, causing a 17 percent spike in futures before a slight retreat. The move aims to boost domestic production but risks disrupting global trade and raising costs for U.S. manufacturers.
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- Copper is vital for industries like EVs, defense, and renewable energy. The U.S. imports half its supply (mainly from Chile, Canada, and Mexico), with domestic production hampered by regulations and environmental concerns.
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- Prices soared 13 percent in a single day, marking the biggest-ever daily gain. The tariff intensified an existing rally driven by energy demand, leaving investors uncertain about long-term U.S. competitiveness versus short-term mining incentives.
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- Key suppliers like Chile, Canada, and Mexico rejected the tariff, threatening trade disputes. Critics warn of retaliation, supply chain disruptions, and harm to allied smelters processing U.S.-bound copper.
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- While U.S. miners (e.g., Freeport-McMoRan) benefit, manufacturers face higher costs due to limited smelting capacity. The policy echoes past trade wars, risking inflation, project delays, and retaliatory measures that could hurt broader industries.
Copper prices surged to record highs on Tuesday, July 8, after U.S. President Donald Trump announced plans to impose a 50 percent tariff on imported copper – a move aimed at reviving domestic production of the critical industrial metal.
The announcement sent shockwaves through global markets, with copper futures in New York spiking nearly 17 percent before settling slightly lower. The tariff – part of a broader push to protect American industries – could reshape trade dynamics, strain relations with key allies, and drive up costs for U.S. manufacturers.
Copper is the backbone of modern industry – essential for everything from electric vehicles and military hardware to household wiring and renewable energy infrastructure. The U.S. relies heavily on imports, with roughly half of its annual supply coming from foreign sources – primarily Chile, Canada, and Mexico.
Domestic production has stagnated due to regulatory hurdles and environmental opposition, leaving the country vulnerable to supply disruptions. Trump’s aggressive tariff strategy seeks to reverse that dependency by forcing companies to buy American. (Related: Copper collapse: Tariff war sparks metals meltdown, rattles global markets.)
“The idea is to bring copper home, bring copper production home, bring the ability to make copper, which is key to the industrial sector, back home to America,” U.S. Commerce Secretary Howard Lutnick said. But critics warn the move could backfire, triggering price inflation, retaliatory trade measures, and short-term economic instability.
The immediate market reaction was explosive – Comex copper for July delivery jumped 0.66 per pound, or 13 percent, to close at $5.645. That’s a record high and the biggest single-day gain ever for copper, according to Dow Jones Market Data. The metal is up 41.6 percent year to date and up 23.3 percent over the past 52 weeks.
Who wins and who loses in Trump’s levy on copper
Key U.S. trading partners were caught off guard. Chile, Canada, and Mexico – the top suppliers of refined copper – quickly pushed back.
Chile’s state-owned Codelco, the world’s largest copper miner, demanded clarity on whether the tariff would apply universally or target specific products. Canada’s mining industry, meanwhile, warned that the tariff could hurt smelters like Glencore’s Horne facility in Quebec, which processes U.S.-bound copper.
Mexico and Canada, bound to the U.S. by free trade agreements, may challenge the measure under existing trade dispute mechanisms. But the tariff also serves as a double-edged sword for American industry, not just foreign suppliers.
Mining companies like Freeport-McMoran stand to gain from higher prices and reduced foreign competition. Freeport, which operates major mines in Arizona and New Mexico, has long advocated for policies to boost domestic production. But manufacturers that rely on copper, like electronics firms, automakers, and construction companies, face steep cost increases. The U.S. lacks sufficient smelting capacity to meet demand, meaning businesses could be stuck paying inflated prices for years until new production comes online.
This isn’t Trump’s first foray into aggressive tariffs. During his presidency, he imposed steep levies on steel and aluminum under Section 232 of the Trade Expansion Act, the same legal authority now being used for copper. Those tariffs sparked retaliatory measures from China and the European Union, hurting American farmers and manufacturers.
History may repeat itself. If trading partners retaliate, U.S. exports could face new barriers abroad. Worse, a prolonged copper shortage could delay infrastructure projects and green energy initiatives, undermining the very industries Trump aims to protect.
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