Trump's Bold Move: 50% Tariff on Copper to Boost U.S. Production
President Donald Trump plans a 50% tariff on copper to enhance U.S. production. The announcement spiked U.S. Comex copper futures by over 12%. The tariffs aim to bring copper production back to America, despite opposition from international suppliers and potential volatility in copper markets.
In a bid to enhance domestic production of a key metal, President Donald Trump has declared a substantial 50% tariff on copper imports, igniting a significant 12% surge in U.S. Comex copper futures. Announced ahead of industry expectations, this tariff move aims to bring copper production back to American soil, essential for electric vehicles, military equipment, power grids, and consumer goods.
While Trump hinted at the prospective tariff during a White House cabinet meeting, details on its implementation remain scant, with plans for a detailed announcement expected via Truth Social on Tuesday. Sources such as U.S. Commerce Secretary Howard Lutnick suggest these tariffs could be enforced by late July or early August, though official confirmation is awaited.
The proposed tariff has incited reactions worldwide, with miners and trade partners like Chile, Canada, and Mexico expressing concerns. Analysts predict short-term fluctuations in copper prices, impacting companies like Freeport-McMoRan. However, experts suggest that U.S. copper production remains years away from fully meeting domestic demand, posing challenges for industries reliant on the imported metal.
(With inputs from agencies.)
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