Copper Prices Crash After Trump Imposes Tariffs on Copper Products

Wall Street Journal

30-07-2025

1514 ET – U.S. copper prices plunged in late trading after President Trump unveiled 50% tariffs on copper products, but not on the raw material itself. Copper prices surged to records this month after Trump said he would impose a 50% import tax on copper. On Wednesday, ahead of the Aug. 1 effective date, the White House backed off taxing copper in its less processed forms, such as concentrate and cathodes, and scrap and instead slapped the levy on products made with copper, such as pipe and wire. The tariff will protect domestic manufacturers of electronics, plumbing fittings and other products, but not miners, smelters or others looking to invest in domestic production capacity. Traders had been bracing for exemptions, such as those being sought by major supplier Chile. Though they had bid up U.S. prices to new highs, the premium over the global price set in London's trading pits never reached 50%. Now, in a flash, U.S. prices are back to where they were before Trump first pitched a 50% copper tariff and in line with global prices. ([e-mail])
1420 ET – Front-month gold futures settled lower with market watchers correctly predicting that the Fed would decide to keep interest rates untouched at 4.25-4.5%. Fed Chair Jerome Powell was not expected to fall in line with President Trump's demands to lower the interest rate, although in a rare occurrence two other governors did dissent. Analysts forecast that a rate cut could come in September, although it's far from a foregone conclusion. 'We think it's a closer call… and Trump's theatrics don't help his demand for prompt and aggressive action,' says Jon Hilsenrath of StoneX in a note. Front-month futures, which rolled over to August today, fell 0.9% to $3,295.80 per troy ounce. ([e-mail])