‘Playing with fire': Warning over US President Donald Trump's 50 per cent copper tariffs as Labor struggles to negotiate
President Trump this week vowed to enforce 50 per cent tariffs on copper and US commerce secretary Howard Lutnick said the levies would come into effect from July or August 1.
It comes as the Albanese government struggles to negotiate tariff exemptions with Trump.
Two allies — United Kingdom and Canada — have already secured exemptions amid broader negotiations and commitments to significantly lift defence spending.
However, Mr Albanese has been unable to even meet President Trump face to face, much less negotiate a trade deal.
Copper prices have soared on Wednesday following Trump's announcement with the metal up more than 14 per cent compared to Tuesday.
Commonwealth Bank of Australia's commodities specialist Vivek Dhar warned of pain across the global economy amid the price hikes.
'It may benefit upstream in terms of (US) copper producers, but if you go further downstream to those that consume copper, the higher price paid is something that can really hurt that industry,' Mr Dhar said on Business Now.
'This is something we have precedence of. If we go back to 2018 to 2021, this is exactly what happened with steel and aluminium.'
He warned the Trump Administration could ultimately hurt the US economy if its tariff plan goes awry.
'I think the US is really playing with fire and if it doesn't go to plan it could actually be worse for the US economy, just given how the downstream sector response," Mr Dhar said.
Multinationals BHP and Rio Tinto have come under the microscope since Trump revealed the massive levies.
Both companies mine copper in South America, while BHP also mines in South Australia and Rio Tinto mines in Mongolia.
Further backlash to Trump's copper tariff came from Minerals Council of Australia CEO Tania Constable, who said the measures would 'disrupt global trade, undermine investment confidence, and increase costs for consumers including in the United States'.
'Sudden and sweeping trade actions only heighten uncertainty and constrain the ability of businesses to plan, invest and grow,' Ms Constable said.
'The right response is not to raise barriers, but to make economies more resilient, productive and globally connected.
'While Australia's direct copper exports to the United States are limited, trade restrictions imposed on other key trading partners have the potential of disrupting global supply chains, increasing costs, and creating uncertainty for Australian exporters.'
Trump's announcement rattled many companies on the ASX including Capstone Copper (down 3.3 per cent), Sandfire Resources (down 3.4 per cent) and Evolution Mining (down 6.6 per cent).
The copper levies come alongside planned 200 per cent tariffs on pharmaceuticals that Trump said his administration will enforce in about 'a year (or a) year and a half'.
'We'll give them a certain period of time to get their act together,' Trump said about drugmakers bringing manufacturing to the U.S.
Treasurer Jim Chalmers remains on alert after Trump revealed the swath of levies.
'These are obviously very concerning developments,' he told ABC RN.
'It's been a feature of recent months that we've had these sorts of announcements out of DC.
'It's still early days. Obviously, we'll make a more detailed assessment of what's come out of the US in the usual way. The two big announcements were obviously regarding copper and pharmaceuticals.'
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A slew of Australian arts bodies, including the Melbourne Symphony Orchestra, the State Library of Australia and Creative Australia, faced backlash after revoking opportunities from artists who had been outspoken critics of Israel. And the report recommended that higher education institutions and all levels of government adopt the International Holocaust Remembrance Alliance's controversial definition of anti-Semitism, which has been criticised for conflating criticism of Israel and Zionism with anti-Semitism. When asked about scrutiny of Israel, Prime Minister Anthony Albanese said that people had a right to their perspectives but did not have a right to bring conflict to Australia. "Whatever your view on the Middle East, it is not advanced by attacking people here in Australia because of who they are, because of their faith, because of their identity - it's completely unacceptable," he told reporters in Sydney, standing alongside Ms Segal. "The kind of hatred and violence that we've seen on our streets recently is despicable, and it won't be tolerated." He welcomed her plan, but noted the government and society would need to collaborate to ensure anti-Semitism was "pushed to the margins". Ms Segal's report has been in the works since her July 2024 appointment, which itself was a response to a rise in anti-Semitism following the October 7 attacks. An East Melbourne synagogue was set alight on Friday night, seven months after a firebombing at the Adass Israel Synagogue of Melbourne about 20 minutes away. There have been multiple incidents of vandalism at Jewish schools and synagogues, as well as a firebombing at the former home of a prominent community leader in Sydney in late 2024. According to the report, there was a 300 per cent rise in threats, vandalism and physical violence against Jewish Australians between October 2023 and September 2024, driven by offline and online extremist ideologies. But anti-Semitism had already been steadily rising in Australia prior to October 7. Federal Opposition Leader Sussan Ley has urged the prime minister to act on Ms Segal's recommendations. "This report shows anti-Semitism is not just a problem of security or law enforcement," she said. "It's a cultural and societal cancer that needs attention through our schools, universities, media, and even the arts." Australian universities and cultural institutions could have their funding withheld as part of a sweeping plan to clamp down on anti-Semitism. The Special Envoy to Combat Anti-Semitism Jillian Segal has produced a report saying that cultural and educational spaces, specifically university campuses, are places where Jewish Australians suffered discrimination. As a result, its recommendations call on the federal government to work with Ms Segal to withhold funding from universities, programs or individuals within universities that facilitate, enable or fail to act against anti-Semitism. Public grants for university centres and academics could also be terminated if recipients engage in "anti-Semitic or otherwise discriminatory or hateful speech or actions". "Universities will continue to be held accountable," Ms Segal told reporters in Sydney as she delivered her findings to the federal government. "When my report speaks of education ... it is not just about education on the history of the Middle East or education about anti-Semitism, it is education about how to have civil dialogue and we've lost that." About 60 per cent of Australian Jewish students who experienced anti-Semitism in 2024 felt unsupported by their institutions, according to a survey by the Australian Union of Jewish Students referred to in Ms Segal's report. Cultural institutions, broadcasters and artists also featured, as the report recommended governments ensure public funding isn't used to support or implicitly endorse anti-Semitism themes or narratives. It suggests terms in agreements to allow funding to be pulled from institutions or festivals that promote, facilitate or don't "effectively deal with" hate or anti-Semitism. There are some concerns that the plan could stifle legitimate criticism of Israel, whose violence in Gaza - in the wake of the October 7, 2024, killings of Israeli citizens by Hamas - has resulted in the deaths of more than 57,000 Palestinians. A slew of Australian arts bodies, including the Melbourne Symphony Orchestra, the State Library of Australia and Creative Australia, faced backlash after revoking opportunities from artists who had been outspoken critics of Israel. And the report recommended that higher education institutions and all levels of government adopt the International Holocaust Remembrance Alliance's controversial definition of anti-Semitism, which has been criticised for conflating criticism of Israel and Zionism with anti-Semitism. When asked about scrutiny of Israel, Prime Minister Anthony Albanese said that people had a right to their perspectives but did not have a right to bring conflict to Australia. "Whatever your view on the Middle East, it is not advanced by attacking people here in Australia because of who they are, because of their faith, because of their identity - it's completely unacceptable," he told reporters in Sydney, standing alongside Ms Segal. "The kind of hatred and violence that we've seen on our streets recently is despicable, and it won't be tolerated." He welcomed her plan, but noted the government and society would need to collaborate to ensure anti-Semitism was "pushed to the margins". Ms Segal's report has been in the works since her July 2024 appointment, which itself was a response to a rise in anti-Semitism following the October 7 attacks. An East Melbourne synagogue was set alight on Friday night, seven months after a firebombing at the Adass Israel Synagogue of Melbourne about 20 minutes away. There have been multiple incidents of vandalism at Jewish schools and synagogues, as well as a firebombing at the former home of a prominent community leader in Sydney in late 2024. According to the report, there was a 300 per cent rise in threats, vandalism and physical violence against Jewish Australians between October 2023 and September 2024, driven by offline and online extremist ideologies. But anti-Semitism had already been steadily rising in Australia prior to October 7. Federal Opposition Leader Sussan Ley has urged the prime minister to act on Ms Segal's recommendations. "This report shows anti-Semitism is not just a problem of security or law enforcement," she said. "It's a cultural and societal cancer that needs attention through our schools, universities, media, and even the arts." Australian universities and cultural institutions could have their funding withheld as part of a sweeping plan to clamp down on anti-Semitism. The Special Envoy to Combat Anti-Semitism Jillian Segal has produced a report saying that cultural and educational spaces, specifically university campuses, are places where Jewish Australians suffered discrimination. As a result, its recommendations call on the federal government to work with Ms Segal to withhold funding from universities, programs or individuals within universities that facilitate, enable or fail to act against anti-Semitism. Public grants for university centres and academics could also be terminated if recipients engage in "anti-Semitic or otherwise discriminatory or hateful speech or actions". "Universities will continue to be held accountable," Ms Segal told reporters in Sydney as she delivered her findings to the federal government. "When my report speaks of education ... it is not just about education on the history of the Middle East or education about anti-Semitism, it is education about how to have civil dialogue and we've lost that." About 60 per cent of Australian Jewish students who experienced anti-Semitism in 2024 felt unsupported by their institutions, according to a survey by the Australian Union of Jewish Students referred to in Ms Segal's report. Cultural institutions, broadcasters and artists also featured, as the report recommended governments ensure public funding isn't used to support or implicitly endorse anti-Semitism themes or narratives. It suggests terms in agreements to allow funding to be pulled from institutions or festivals that promote, facilitate or don't "effectively deal with" hate or anti-Semitism. There are some concerns that the plan could stifle legitimate criticism of Israel, whose violence in Gaza - in the wake of the October 7, 2024, killings of Israeli citizens by Hamas - has resulted in the deaths of more than 57,000 Palestinians. A slew of Australian arts bodies, including the Melbourne Symphony Orchestra, the State Library of Australia and Creative Australia, faced backlash after revoking opportunities from artists who had been outspoken critics of Israel. And the report recommended that higher education institutions and all levels of government adopt the International Holocaust Remembrance Alliance's controversial definition of anti-Semitism, which has been criticised for conflating criticism of Israel and Zionism with anti-Semitism. When asked about scrutiny of Israel, Prime Minister Anthony Albanese said that people had a right to their perspectives but did not have a right to bring conflict to Australia. "Whatever your view on the Middle East, it is not advanced by attacking people here in Australia because of who they are, because of their faith, because of their identity - it's completely unacceptable," he told reporters in Sydney, standing alongside Ms Segal. "The kind of hatred and violence that we've seen on our streets recently is despicable, and it won't be tolerated." He welcomed her plan, but noted the government and society would need to collaborate to ensure anti-Semitism was "pushed to the margins". Ms Segal's report has been in the works since her July 2024 appointment, which itself was a response to a rise in anti-Semitism following the October 7 attacks. An East Melbourne synagogue was set alight on Friday night, seven months after a firebombing at the Adass Israel Synagogue of Melbourne about 20 minutes away. 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