Copper prices exploded to historic levels Tuesday after President Donald Trump declared during a White House Cabinet meeting that he would slap a 50% import duty on the industrial metal.
Trump’s brief remarks — “Today we’re doing copper. I believe the tariff on copper, we’re going to make it 50%” — sent commodity traders scrambling and futures contracts rocketing upward by as much as 17%.
Copper futures surged to a record $5.95 per pound during intraday trading on the Comex exchange, though contracts closed up 13.12% for the session. This is the strongest single-session performance in 36 years.
This is Trump’s fourth major trade action since returning to office, adding to existing duties of 50% on steel and aluminum, plus 25% on vehicle imports. Implementation could come within weeks, according to Commerce Secretary Howard Lutnick.
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The US relies on foreign suppliers for roughly half its copper consumption, with Chile serving as the dominant source. Mining giant Freeport-McMoRan (NYSE: FCX) saw its stock price climb 5% as investors bet on advantages for domestic producers.
The surge created unusual market conditions, with New York contracts trading at a 24% premium over London benchmarks — an extreme divergence that shows just how trade policies are fracturing global commodity flows.
“A 50% increase will be a massive tax on consumers of copper,” warned Ole Hansen, a strategist at Saxo Bank who tracks metals markets.
Electrical contractors, manufacturers, and renewable energy companies all depend heavily on copper for wiring and components. The metal has already surged 38% year-to-date amid escalating trade tensions.
Trump separately indicated that pharmaceutical imports face potential 200% duties, though he suggested giving companies as long as 18 months to relocate production stateside.
Trump’s expanding tariff regime could raise typical household costs by $3,800 annually, according to estimates. Early Wednesday trading saw copper retreat 4% as the initial market shock began to fade.
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