Copper Prices Plunge 20% as Trump Exempts Refined Metal from Tariffs

Copper markets experienced unprecedented volatility Wednesday, with futures dropping nearly 20% after President Donald Trump’s administration clarified that refined copper would be excluded from the new 50% import duties.

The policy announcement triggered a sharp selloff, with prices falling from above $5.70 per pound to approximately $4.55 — the most severe single-session decline in decades for the industrial metal. Traders had widely expected comprehensive tariffs across all copper categories. 

The White House announcement revealed that starting August 1, the 50% duties will target semi-finished goods including pipes, wires, rods, and sheets, plus copper-heavy products like cables and electrical components. Pure copper cathodes used in manufacturing will remain tariff-free.

“This announcement indicates the copper tariffs are much more limited in nature than the market originally understood,” said Rob Haworth, senior investment strategist at US Bank Asset Management.

Industry advocates had pressed the administration to limit tariff scope, citing America’s inability to quickly boost domestic production to meet current import volumes. The United States imports roughly half of its copper needs, primarily from Chile, Canada, Peru, and Mexico.

Read: Copper Shortage Threatens to Derail Global Clean Energy Plans

When Trump first announced copper tariff plans this month, prices had surged to historic peaks above $5.69 per pound in the largest daily gain in over five decades. This prompted a buying frenzy as companies rushed to secure inventory before duties took effect.

Read: Trump Copper Tariff Announcement Sends Prices to Record Highs

Morgan Stanley calculated that approximately 400,000 tons of additional copper — equivalent to six months of normal imports — flowed into US warehouses during early 2025 as businesses prepared for trade restrictions.

This year has been a rollercoaster ride for the copper market, driven by supply concerns and Trump’s trade policies. Despite Wednesday’s collapse, copper remains about 10% higher than a year ago.

Market volatility is expected to persist as businesses navigate shifting trade policies. While the refined copper exemption relieves pressure on manufacturers in electronics, construction, and automotive sectors, companies using fabricated copper products will face increased costs.

London Metal Exchange prices rose slightly following the US announcement as global markets absorbed the policy shift, while COMEX futures remained sharply lower.

Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.