Trump imposes 50% tariff on copper imports

In July 2025, President Donald Trump declared his intention to impose a new 50% tariff on copper imports into the United States. This move is part of a more extensive strategy involving industry-specific trade measures that the administration has been pursuing to safeguard national security and bolster domestic manufacturing. During a Cabinet meeting at the White House, Trump explained that the tariff would contribute to a broader initiative under the Trade Expansion Act, allowing tariffs on imports considered threats to national security. His announcement caused a sharp increase in copper futures, reflecting market reactions to anticipated price changes due to this new duty. The imposition of tariffs on imported copper comes after extensive discussions about trade imbalances, particularly with countries that are significant producers of the metal, such as Chile, which exported $6 billion worth of copper to the US last year. In the context of increasing tensions over trade, the Trump administration's strategic focus has been on sectors deemed critical to national security, including not only copper but also semiconductors and pharmaceuticals. By utilizing Section 232 of the Trade Expansion Act, Trump aims to investigate other industries, potentially leading to further tariffs that could affect consumer prices and global supply chains. As the copper tariff plan unfolded, markets reacted swiftly, with futures for copper surging significantly – at one point, recording the largest intraday jump since 1988. This high volatility in copper prices suggests that American manufacturers and consumers might soon face increased costs for goods that rely heavily on copper, such as electronics and vehicles. This tariff will mark the fourth across-the-board tariff imposed by Trump during his second term, indicating a sustained commitment to an aggressive trade policy. Additionally, Trump mentioned plans for 200% tariffs on pharmaceuticals, with a proposed grace period for pharmaceutical manufacturers allowing them to relocate production domestically before those tariffs take effect. This strategy closely aligns with the overarching goal of encouraging domestic production and mitigating reliance on overseas supply chains. As these tariffs are set to reshape American manufacturing and international trade relations, the coming months and years will be pivotal in observing how these policies affect economic dynamics.