Trump tells us to impose a 50% tariff on copper imports, copper futures jump
Andrea Sharall, Jarrett Renshaw, Ernest Shader
WASHINGTON (Reuters) – President Donald Trump said he will announce a 50% copper tariff on Tuesday, hoping to promote the production of metals important for electric vehicles, military hardware, the power grid and many consumer goods.
US Comex Copper futures have recorded a record high of over 12% after Trump announced planned tariffs.
Trump told reporters at the White House Cabinet meeting that he had planned to announce copper tariffs later that day, but he had not told him when the tariffs would take effect.
“I believe in copper tariffs, we’re going to make 50%,” Trump said.
After Trump spoke, U.S. Commerce Secretary Howard Lutnick said in an interview with CNBC that copper tariffs are likely to be introduced by the end of July or August 1st.
Trump had not officially announced tariffs by Wednesday evening, and mining companies and trade groups said they were waiting for solid details.
Analysts at RBC Capital Markets said they expect copper prices and short-term volatility in the copper company’s stock if tariffs are implemented.
In February, the administration published a so-called Section 232 investigation into US imports of red metal. The survey deadline was November, but Lutnick said the review had already been completed.
“The idea is to bring copper into the house, bring copper production into the house, bring its ability to bring copper back into the United States, the key to the industrial sector,” Rutnick said.
The National Mining Association declined to comment and said it prefers to wait until details are made public. The American Critical Mineral Association did not immediately respond to requests for comment.
Copper is used in construction, transportation, electronics and many other industries. The US imports about half of its copper needs each year, with only three copper smelters.
Major copper mining projects across the United States have faced strong opposition in recent years for a variety of reasons, including the Rio Tinto in Arizona and the BHP Resolution Copper Project and the Pebble Mining Project in Alaska’s Northern Dynasty Minerals.
Stakes in Phoenix-based Freeport-McMoran, the world’s largest copper producer, have earned more than 5% at some point in trading Tuesday. The company, which produced 1.26 billion pounds (571,530 metric tons) of copper in the US last year, did not immediately respond to requests for comment.