According to reports, U.S. President Donald Trump is planning to impose a 50% tariff on copper imports, including refined copper and semi-finished products such as wires, plates, and pipes—key materials widely used in power grids, military applications, data centers, consumer electronics, automobiles, and construction. The measure, expected to take effect on August 1, could have far-reaching implications across various sectors of the U.S. economy.
While the specifics of the tariff have yet to be finalized, sources reveal that semi-finished copper may also be included, further expanding its impact. Following the news, copper prices on the New York Mercantile Exchange (Comex) briefly rose by 1.3%. The Trump administration aims to strengthen the domestic copper supply chain, covering mining, refining, processing, and recycling. However, given the U.S.’s heavy reliance on copper imports, the policy could drive up manufacturing costs and weaken the global competitiveness of related industries.
Data shows that the U.S. imported 908,000 tons of refined copper last year, primarily from Chile, which accounts for about 70% of total U.S. copper imports. The Chilean government is seeking an exemption, arguing that the U.S. would struggle to find alternative suppliers in the short term. Additionally, the U.S. has limited domestic smelting capacity, with only two active smelters, and about half of its domestically produced semi-finished copper is exported to China. Analysts warn that if tariffs are imposed solely on refined copper, semi-finished copper imports could surge, further destabilizing the market.
Alice Fox, an analyst at Macquarie Bank, noted that taxing intermediate forms of copper—such as wire, rods, and tubes—would raise production costs and erode international competitiveness. Ivan Arriagada, CEO of Antofagasta Plc, also highlighted that the policy would pose significant challenges for U.S. copper product manufacturers.
Industry research suggests that without broader incentives and tariffs on semi-finished products, reliance on imports may persist, ultimately harming copper consumers.
