FX.co ★ Copper Trims Gains as Trump Unveils 50% Import Tariff

Copper futures have recently surged to unprecedented levels, climbing above $5.8 per pound, before a slight decline to approximately $5.5 per pound. This fluctuation follows an announcement by US President Donald Trump concerning the imposition of a 50% tariff on copper imports. The objective of this measure is to enhance domestic copper production and decrease dependency on foreign imports, given that the US imports almost half of its copper, mainly from Chile. This tariff adjustment aligns copper with the existing 50% tariffs already in place for steel and aluminum, thereby intensifying trade tensions and contributing to increased volatility within the metals market. US Commerce Secretary Howard Lutnick has confirmed the completion of an investigation into copper imports and anticipates that President Trump will sign a formal declaration by the end of July. In the short term, traders expect that this heightened tariff will lead to increased shipments to the US, which may potentially cause a tightening of global supplies and further disrupt market equilibrium.