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.
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.
