The United States government has announced plans to impose a 50% tariff on imported copper, marking a significant escalation in its use of trade barriers to protect domestic industries. President Donald Trump revealed the move during a recent cabinet meeting, confirming earlier threats made after a national security investigation into copper imports. Commerce Secretary Howard Lutnick said the tariff is expected to come into effect by the end of July 2025.
Sharp Increase in Copper Tariff Targets Key Industrial Metal
The new levy on copper imports represents one of the steepest tariffs the US has introduced on raw materials in recent years. Currently, copper imports face substantially lower tariffs, but this sudden 50% rate brings copper in line with US tariffs on steel and aluminium. The decision follows concerns raised by the Trump administration that reliance on foreign copper especially from countries such as Chile and Canada could pose risks to national security.
Copper is a critical component in various sectors, including electric vehicle manufacturing, telecommunications, construction, and military equipment. According to the US Geological Survey, the US imported approximately 810,000 metric tons of refined copper in 2024, fulfilling nearly half of domestic consumption. Chile remains the largest copper exporter to the US, followed by Canada.
“This tariff will have an immediate impact on supply chains and prices, given copper’s central role in so many industries,” said Dr. Helen McAdams, an economist specializing in metals markets at the Institute for Industrial Policy. “While it may benefit American miners in the short term, downstream manufacturers could face increased costs that trickle through to consumers.”
Administration Formalizes Tariff Amid Broader Trade Investigations
President Trump’s announcement follows earlier investigations launched by the US Commerce Department into imports of critical goods, including pharmaceuticals, semiconductors, and lumber. These probes examine whether imports undermine the competitiveness of US industries or threaten economic and national security.
Secretary Lutnick confirmed that formal documents authorizing the copper tariff would be signed imminently. The announcement was made publicly during a televised cabinet session, in which President Trump stated, “Today we’re doing copper. We’re going to make it 50%.”
Industry groups have signalled caution, underscoring the need to review the final orders before fully assessing the potential exemptions or scope of the tariff. “We have to see whether this will apply to all countries or only some,” said Andrés Rodríguez, chairman of Codelco, Chile’s state-owned copper producer.
The uncertainty has already affected commodities markets. US copper prices surged to historic highs following the announcement, reflecting investor concerns about supply disruptions and cost inflation for manufacturers dependent on imported copper.
Mixed Reactions from Industry and Trade Experts
Trade experts warn that the tariffs could provoke retaliatory measures from key US trading partners and disrupt global supply chains. Scott Lincicome, vice president of economics and trade at the Cato Institute, described the announcement as “more of the same,” highlighting longstanding US trade policy uncertainties.
“We’re likely to see a new era of historically high tariffs not just the level, but also the range of products affected,” Lincicome said. “While domestic copper producers may benefit, the increased costs for the larger number of US firms reliant on copper could have broader negative economic effects.”
The move also comes amid rising geopolitical tensions. Several US allies, including Canada, Mexico, and members of the European Union, have expressed concern about the Trump administration’s unilateral tariff decisions, warning of potential trade disputes.
UK Steelmakers Await Clarity on Tariff Exemptions
The copper tariff announcement coincides with ongoing efforts by the White House to ramp up tariffs on imports from multiple countries starting August 1, 2025. While a 10% tariff currently applies to many goods, higher rates between 25% and 40% have been proposed, pending negotiations.
UK steel and aluminium producers remain in a state of uncertainty awaiting the finalisation of tariff arrangements. Earlier this year, the US and UK agreed on a deal to allow tariff-free access for UK metals up to a certain volume. However, the exact quota and terms remain under review.
Currently, steel and aluminium products from the UK still face a 25% import tariff, which could double if an agreement is not formalised by the July 9 deadline. Industry representatives urge swift resolution to prevent supply chain disruptions.
“The UK steel sector is watching developments closely,” said Martin Fletcher, spokesperson for the British Steel Federation. “A clear, stable trade framework with the US is vital for future growth and investment.”
The White House did not respond to requests for comment on the status of talks with the UK or whether exemptions would extend to copper imports.
Future Outlook and Economic Implications
The introduction of a 50% copper tariff underscores the Trump administration’s continued reliance on protectionist trade policies to bolster domestic manufacturing and safeguard critical industries. However, economists caution that steep tariffs can have unintended consequences beyond immediate industry benefits.
“Tariffs are a double-edged sword,” commented Dr. McAdams. “They may stimulate certain sectors but can also increase production costs, limit competitiveness, and provoke retaliatory tariffs that harm exporters.”
Market analysts predict that global copper supply chains could experience volatility, with potential price fluctuations affecting downstream industries such as electric vehicle production a sector vital to the US’s green energy goals.
In parallel, the administration’s plans to impose tariffs of up to 200% on pharmaceuticals albeit with a proposed year-long adjustment period for the industry signal an aggressive stance on import controls that could reshape multiple markets.
As the trade landscape evolves, companies and governments alike will closely monitor US tariff measures and their broader geopolitical and economic ramifications.
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