Trump’s Half-Priced Copper Tariff Shakes U.S. Market

The United States, led by President Donald Trump, has announced a 50% tariff on copper pipes and wiring, targeting specific products while excluding raw materials such as ores and cathodes. This decision confounded the market, resulting in a 17% drop in U.S. copper prices and disrupting domestic copper premiums.

Analysts suggest that this policy shift was influenced by concerns over the broader economic impact. Companies like Freeport-McMoRan and emerging miners like Hudbay Minerals are expected to face challenges. The tariff, effective from Friday, aids manufacturers but offers little boost to the U.S. mining sector, which has been advocating for reform.

This surprising tariff detail has favored international copper suppliers like Chile and Peru. Analysts predict that London's copper prices may soon surpass those in the U.S. as American inventory levels rise. Trump is contemplating further tariffs, with a review set for 2026 to determine the need for additional import duties.

(With inputs from agencies.)