President Donald Trump has announced a 50% tariff on all semi-finished copper products entering the United States, a move that surprised the metals market by excluding refined copper from the scope of the duty.
The proclamation, issued Wednesday, will go into effect on August 1, according to a White House fact sheet.
The market had broadly anticipated tariffs on raw copper, which is a fundamental component in products ranging from electrical wiring to auto parts and construction materials.
However, the narrower scope of the new tariff helped avoid higher costs for many domestic manufacturers that rely on refined copper imports.
Copper prices reacted sharply to the announcement, plunging around 19% to $4.53 per pound at the time of writing.
The copper tariff follows earlier trade measures imposed by the Trump administration on steel and aluminum and comes under Section 232 of the Trade Expansion Act, a provision that allows tariffs to be enacted on national security grounds.
Defense production act invoked to bolster domestic supply
In a rare move, President Trump invoked the Defense Production Act (DPA), a law dating back to the Korean War, to ensure that more copper remains available for domestic use.
Under the order, 25% of high-quality copper scrap and raw copper produced in the US must be sold domestically starting this year.
That percentage will rise incrementally to 30% in 2028 and 40% in 2029.
According to the White House, the intent is to strengthen US refining capacity by ensuring a reliable supply of low-cost inputs.
This is meant to support growth in domestic operations and reduce reliance on foreign copper sources, particularly as copper remains a critical input in infrastructure, electronics, and defense systems.
Despite the new tariff, products subject to other tariffs—such as those under Trump’s earlier auto import duties—will not be double-taxed.
If a copper-containing product falls under both categories, only the auto tariff will apply, according to the White House.
Market impact and broader economic concerns
While the administration has framed the tariff as a means of addressing trade imbalances and supporting American industry, analysts have expressed concern about broader economic impacts.
The Tax Foundation warned that ongoing tariffs across sectors—including those on autos, lumber, and pharmaceuticals—could slow US economic growth.
Copper is the third-most-used industrial metal globally, following iron and aluminum.
The US imports nearly half of its copper supply, with Chile being the largest source, based on US Geological Survey data.
Experts caution that while the tariff may boost domestic refining in the long term, it could also lead to higher prices for a wide range of copper-based products.
These include not only infrastructure and construction materials but also consumer electronics and automobiles.
With the copper duty set to take effect on August 1, stakeholders across industries are now bracing for ripple effects in both pricing and supply chain dynamics.
The post Trump slaps 50% tariff on semi-finished Copper imports, spares refined metal appeared first on Invezz
