There is a new tariff announcement on US copper futures that has raised its price and surged supply concerns. It jumped over 12% to a record high on Tuesday after former President Donald Trump said his administration would enforce a 50% tariff on copper imports.
The announcement followed the early conclusion of a Section 232 investigation into the national security implications of copper imports. US Commerce Secretary Howard Lutnick confirmed the review had finished ahead of its November deadline.
Under Trump’s “Make in America” policy, the decision was aimed at bringing copper production back to America. Lutnick emphasized the importance of copper to the industrial sector. Details about the announcement are expected to be posted on Trump’s Truth Social account.
Industry Response and Market Reaction
The US imports about half of its annual copper needs. The major suppliers of copper to the US are Chile, Canada, and Mexico. The country has only three operating copper smelters.
Analysts predict that there will be short-term volatility in copper prices and related industries, depending on the tariff’s implementation timeline.
Strategic Material Meets Protectionist Policy
Copper is a widely used material, especially in energy infrastructure, electric vehicles, construction, electronics, military applications, and many others. This move aims to support domestic production. However, global effects could be seen in rising manufacturing costs and strained supply chains.
Also Read: US Imports Of Critical Minerals Surge via Thailand, Mexico After China Export Ban
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
