President Donald Trump has announced a new 50% tariff on all copper imports into the United States, though the timeline for its implementation remains uncertain.
President Donald Trump declared on Tuesday that a 50% tariff will be imposed on all copper imported into the U.S., continuing his administration’s pattern of leveraging tariffs as a strategic tool. However, details regarding when this new tariff will take effect are not yet clear.
“Today we’re doing copper,” Trump stated during a Cabinet meeting, indicating his administration’s decision to set the tariff at 50%.
This initiative marks the fourth broad-based tariff imposition by Trump in his second term. Previously, the administration set tariffs of 25% on imported cars and car parts, alongside 50% tariffs on imported steel and aluminum.
The White House has not yet provided CNN with any information about the timeline for enacting the copper tariffs.
The decision to impose a copper tariff follows a Section 232 investigation initiated in February, leveraging a legal framework that authorizes the president to impose tariffs for national security reasons.
Copper is integral to the manufacturing of numerous goods, including electronics, machinery, and automobiles. Imposing tariffs on copper could potentially elevate the cost of these goods for American consumers. Last year, the United States imported $17 billion worth of copper, according to data from the U.S. Commerce Department. Chile emerged as the largest supplier, exporting $6 billion worth of copper to the U.S. in 2024.
Following Trump’s announcement, copper prices soared to unprecedented levels. Copper futures in New York spiked by as much as 15%, reaching a record high of $5.68 per pound.
“I’ve been surprised it’s taken this long to get the copper tariff,” Ed Mills, a Washington policy analyst at Raymond James, remarked to CNN.
This year, copper prices have surged by 38%, reflecting a tendency to stockpile the metal in anticipation of tariff hikes.
“A 50% increase will be a massive tax on consumers of copper,” commented Ole Hansen, head of commodity strategy at Saxo Bank. “Watch what Trump does, not what he says,” Hansen advised, suggesting that a staggered tariff approach might be adopted to mitigate its impact on consumers.
In addition, Trump announced impending 200% tariffs on pharmaceuticals, noting that these could be delayed to incentivize pharmaceutical companies to relocate their operations to the U.S.
Although the president had exempted pharmaceutical imports from tariffs during his first term, he has been vocal about implementing such measures, citing national security concerns. An investigation into pharmaceutical imports commenced in mid-April, potentially paving the way for these tariffs.
Trump argues that increasing domestic pharmaceutical production is crucial for reducing reliance on foreign medicine supplies. Several pharmaceutical companies have announced plans to expand their manufacturing capacities within the U.S., some of which were initiated prior to Trump’s second term beginning in January.
The announcement of possible pharmaceutical tariffs prompted a reaction from Australia’s Treasurer, Jim Chalmers, who stated that the country is “urgently seeking” more details about this development given its potential impact on billions of dollars in exports to the U.S.
Additionally, on Monday, Trump extended a pause on “reciprocal” tariffs until August 1. These tariffs, originally set to resume in April, were scheduled to restart at 12:01 a.m. ET on Wednesday. In the interim, Trump has been actively communicating with foreign leaders about potential new tariff rates, pending further negotiations.
This article has been updated to include additional context and recent developments, according to CNN.