Trump crashes the copper market

U.S. copper futures recently plummeted around 20% after President Donald Trump announced steep new tariffs on copper products — though not on the raw material.

The surge before the drop

Copper prices in the U.S. had surged to record highs, far exceeding global prices, after Trump revealed plans to impose a 50% import tax on the metal. Copper is a critical input in a wide range of industries including electronics, automotive manufacturing and construction, where it’s used in water piping and electrical wiring. The looming tariff triggered a rush among traders and businesses to import copper before the policy took effect. Metals warehouses in Baltimore, New Orleans, Detroit and other storage locations filled rapidly as companies scrambled to beat the deadline.

Policy shift

However, just days before the date, the White House altered course. Officials clarified that the 50% tariff would apply only to copper products — such as wire, tubing and sheeting, not to less processed forms like concentrate, cathodes or scrap.

Other impacts

The revised policy offers protection for domestic manufacturers of copper-based products like plumbing fittings and electronic components. However, it provides little benefit to U.S. miners and smelters, who were hoping for broader support to boost domestic production capacity.

The response

Trump’s first announcement stirred excitement among miners, who believed the administration might also move to ease the hurdles that have long obstructed the development of new mines and smelting facilities. However, others remained wary of basing investment decisions on unpredictable statements. “Trump has declared massive tariffs before and then not implemented them,” Bernstein analyst Bob Brackett reportedly wrote in a note to clients. “The tariff incents no proper economic action but rather simply adds cost to U.S. manufacturers,” he wrote.

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