Trump Confirms 50% Copper Tariff Starting August 1, Sparking Industry Uncertainty and Price Surge

President Donald Trump has confirmed that the United States will implement a 50% tariff on copper imports beginning August 1, marking a significant escalation in his administration’s push to reconfigure global trade and reinvigorate domestic industry. The announcement, which followed earlier hints during a media briefing, was made official in a post on Truth Social late Wednesday, with Trump taking aim at past administrations.

“This 50% tariff will reverse the Biden Administration’s thoughtless behavior, and stupidity,” Trump wrote. “America will, once again, build a dominant Copper Industry.”

The unexpected scope of the tariff has sent shockwaves through markets and raised alarm across industries reliant on copper—from automotive and aerospace to consumer electronics and appliances. While the president’s remarks laid out the date and motivation behind the move, key specifics remain absent. Traders and manufacturers are still awaiting details on enforcement, product coverage, and possible exemptions for certain suppliers.

The copper market responded quickly. U.S. copper futures surged to record levels earlier this week before easing slightly on Wednesday. By early Thursday afternoon in Shanghai, Comex copper had risen 2.6% to $5.63 per pound, while London Metal Exchange prices edged up 0.5% after five consecutive days of declines. The tariff news has pushed U.S. copper futures to a 28% premium over LME pricing, reflecting market scepticism over the blanket implementation of the tariff.

Traders are now racing to redirect shipments in an attempt to beat the deadline. Some are accelerating cargo deliveries to Hawaii and Puerto Rico to minimize transit time. “Once the logistics pathways run out of time, we would expect arbitrage buying to slow, and pressure LME pricing,” said Lachlan Shaw, co-head of mining research at UBS Group AG. “What this implies for the Comex-to-LME spread will depend on final tariff levels, as well as product coverage, and the extent to which US demand for copper is impacted by tariff-inclusive pricing.”

Trump has already imposed tariffs on steel and aluminium and signalled that more targeted sectoral duties are on the horizon. Alongside the copper tariff, the White House is finalizing a range of country-specific levies scheduled to take effect on August 1 as part of a broader trade overhaul.

In his Truth Social post, Trump defended the copper tariff by pointing to national defense concerns, declaring that copper is “the second most-used metal by the Department of Defense.” He listed ammunition among the defense products requiring copper and said the decision followed a “robust” national-security review. However, the Section 232 report that underpins the decision has yet to be made public.

At present, the U.S. imports the majority of its copper, with top sources including Chile, Canada, and Mexico. Analysts warn that ramping up domestic capacity to meet demand will be a long-term project, with no quick fixes on the horizon.

Trump’s decision drew praise from some corners of the industry. According to the Financial Times, Robert Friedland, founder of Ivanhoe Mines Ltd., supported the move, stating that domestic copper production is “fundamental to America’s national security.” Friedland added, “Just in case we have a war, we have to have enough raw material to deal with it.”

As the August 1 deadline looms, manufacturers, traders, and global partners are bracing for the impact of a tariff that could reshape copper supply chains and raise production costs across a wide range of U.S. industries.

By fLEXI tEAM