US President Donald Trump's abrupt 50% tariff on copper imports has sent shockwaves through global markets, triggering price surges and raising concerns about long-term supply chain stability. The policy, set to take effect August 1, aims to reduce reliance on foreign copper but risks inflating costs for critical US industries.
Copper futures jumped 13% following Trump's initial tariff hint Tuesday, reaching $5.61 per pound in Asian trading Thursday. Analysts warn the move exposes America's structural copper deficit – domestic production covers less than 5% of global output while imports satisfy nearly half of US demand, according to US Geological Survey data.
Manufacturing Domino Effect
Saxo Bank's Ole Hansen notes the tariff could backfire: "Price premiums may undermine US competitiveness in everything from electric vehicles to renewable energy projects." Industry groups fear cascading cost increases for construction, semiconductors, and power grid upgrades.
Strategic Stockpiling Unravels
Citigroup calls the measure a "watershed moment" ending large-scale US copper imports. Macquarie analysts report US buyers stockpiled 881,000 metric tonnes in early 2025 – double immediate needs – creating potential market turbulence as inventories deplete post-tariff.
While the White House frames this as national security policy, Bloomberg reports experts question its near-term viability. Marcus Garvey of Macquarie emphasizes final impacts depend on implementation details, including possible grace periods and product exemptions.
