Trump says US to impose 50% tariff on copper imports, copper futures jump

GMA Network

a day ago

A mine worker walks toward the mine shaft at the Resolution Copper exploratory mine shaft 10 facility in Superior, Arizona, U.S., March 30, 2021. (REUTERS/Caitlin O'Hara/File Photo)
WASHINGTON —President Donald Trump said he would announce a 50% tariff on copper on Tuesday, hoping to boost U.S. production of a metal critical to electric vehicles, military hardware, the power grid and many consumer goods.
U.S. Comex copper futures jumped more than 12% to a record high after Trump announced the planned tariffs, which came earlier than the industry had expected, and the rate was steeper.
Trump told reporters at a White House cabinet meeting that he planned to make the copper tariff announcement later in the day but he did not say when the tariff would take effect.
"I believe the tariff on copper, we're going to make 50%," Trump said.
After Trump spoke, U.S. Commerce Secretary Howard Lutnick said in an interview on CNBC that the copper tariffs would likely be put in place by the end of July or August 1. He said Trump would post details on his Truth Social media account sometime on Tuesday.
In February, the administration announced a so-called Section 232 investigation into U.S. imports of the red metal. The deadline for the investigation to conclude was November, but Lutnick said the review was already complete.
"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," Lutnick said.
The National Mining Association declined to comment, saying it preferred to wait until details were released. The American Critical Minerals Association did not immediately respond to requests for comment.
Copper is used in construction, transportation, electronics and many other industries. The U.S. imports roughly half of its copper needs each year.
Major copper mining projects across the U.S. have faced strong opposition in recent years due to a variety of reasons, including Rio Tinto RIO.AX, RIO.L and BHP's BHP.AXResolution Copper project in Arizona and Northern Dynasty Minerals's NDM.TOPebble Mine project in Alaska.
Shares of the world's largest copper producer, Phoenix-based Freeport-McMoRan FCX.N, shot up nearly 5% in Tuesday afternoon trading. The company, which produced 1.26 billion pounds of copper in the U.S. last year, did not immediately respond to a request for comment.
Freeport, which would benefit from U.S. copper tariffs but worries that the duties would hurt the global economy, has advised Trump to focus on boosting U.S. copper production.
Countries set to be most affected by any new U.S. copper tariff would be Chile, Canada and Mexico, which were the top suppliers to the U.S. of refined copper, copper alloys and copper products in 2024, according to U.S. Census Bureau data.
Chile, Canada and Peru - three of the largest copper suppliers to the U.S. - have told the administration that imports from their countries do not threaten U.S. interests and should not face tariffs. All three have free trade deals with the U.S.
Mexico's Economy Ministry, Chile's Foreign Ministry and Canada's Finance Ministry did not immediately respond to requests for comment. Chile's Mining Ministry and Codelco, that country's leading copper miner, declined to comment.
A 50% tariff on copper imports would hit U.S. companies that use the metal because the country is years away from meeting its needs, said Ole Hansen, head of commodity strategy at Saxo Bank.
"The U.S. has imported a whole year of demand over the past six months, so the local storage levels are ample," Hansen said. "I see a correction in copper prices following the initial jump." —Reuters