President Donald Trump has announced a 50% tariff on copper imports in an effort to strengthen domestic production of the metal, which is vital to electric vehicles, defence manufacturing, power infrastructure, and a wide array of consumer goods.
U.S. copper futures soared over 12%, reaching a record high following the announcement. The decision came earlier and with a higher rate than industry observers had anticipated.
Speaking at a White House cabinet meeting, Trump said he intended to formalise the tariff later in the day, though he did not specify when it would take effect. U.S. Commerce Secretary Howard Lutnick later stated in a CNBC interview that the tariff would likely be in place by the end of July or August 1. He added that further details would be posted on Trump’s social media platform.
Earlier this year, the administration initiated a national security review of copper imports. While the review was scheduled to conclude by November, Lutnick confirmed that the process had already finished.
“The aim is to bring copper production back to the U.S.,” Lutnick said, calling the metal a critical component of the country’s industrial base.
The National Mining Association declined to comment, saying it would wait for more specifics. The American Critical Minerals Association has not yet responded.
Copper is widely used in construction, transportation, electronics, and more. The U.S. currently imports about half of the copper it consumes annually. However, domestic mining projects have encountered strong opposition in recent years due to environmental and political challenges—such as with the Resolution Copper project in Arizona and the Pebble Mine in Alaska.
Shares of Freeport-McMoRan, the largest U.S.-based copper producer, rose nearly 5% following the news. The company produced 1.26 billion pounds of copper domestically last year. While the firm stands to benefit from higher tariffs, it has cautioned that such measures could harm the global economy, and has encouraged the administration to focus on expanding local production capacity instead.
The countries most likely to be impacted by the new tariff include Chile, Canada, and Mexico, which were among the top copper suppliers to the U.S. in 2024. All three have free trade agreements with the U.S. and have argued that their exports do not pose a threat to U.S. national interests.
Officials from Chile, Canada, and Mexico have not issued formal responses. Chile’s state-owned copper giant Codelco and the country’s Mining Ministry have declined to comment.
Ole Hansen, head of commodity strategy at Saxo Bank, noted that while the tariff may encourage domestic production, it could also strain U.S. industries dependent on imported copper. “The U.S. has already imported a full year’s supply of copper in just six months,” Hansen said. “While prices spiked, we could see a correction soon.”
