FX.co ★ Copper Sinks as Raw Metal Excluded from US Tariffs

Copper futures experienced a drop of over 4%, falling below $4.50 per pound on Thursday, extending a nearly 20% decline observed in previous sessions. This decrease followed President Donald Trump's announcement confirming that refined copper would not be included in the new US tariffs set to commence on Friday. The announced tariff policy will target semi-finished copper products, such as wires and pipes, while exempting raw forms like ore, cathodes, and concentrates. These are essential for industrial manufacturing and represent the most commonly imported copper forms into the United States. This selloff also mirrors a reversal of previously accelerated shipments, as traders had rerouted copper supplies to the US in anticipation of more comprehensive tariffs. Now that raw materials are exempt, demand for copper destined for the US has significantly decreased. Chile, the largest supplier of copper to the US, expressed approval of this exemption. Currently, the United States fulfills approximately 45% of its industrial copper requirements through imports, with Chile providing roughly half of that total.