Trump's cooper-tariff tumult sees prices fall as scope of impact defies expectations

South China Morning Post

31-07-2025

US President Donald Trump signed an executive order imposing a 50 per cent tariff on certain copper imports – notably excluding refined copper – on Wednesday, sending US copper prices tumbling by around 20 per cent to US$4.44 a pound as of Thursday afternoon.
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The move clarified the scope of Trump's initial announcement in early July, which had led US futures prices to rally to a record high of nearly US$6 and prompted traders to accelerate shipments in anticipation of widespread duties.
In this explainer, the Post examines the differences between the finalised tariffs and Trump's previous threat, while looking at what the move could mean for global markets.
How do the new tariffs compare with Trump's earlier threat?
Trump's initial threat of a 50 per cent copper levy on July 8 was vague on specifics, but the market had broadly expected it to encompass all forms of the metal, from raw materials to finished products.
The newly announced tariffs, however, are far more limited in scope.
According to the White House, the tariffs – which take effect on Friday – apply only to imports of semi-finished copper products, such as copper pipes and wires, and certain copper-intensive goods, such as cables and electrical components.
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Input materials for smelters and manufacturers, such as ores, concentrates and, crucially, cathodes, are exempted from the steep duties.
Cathodes, also known as refined copper, represent the US' chief copper imports – the country operates only two primary copper smelters and lacks the domestic processing capacity to meet its own needs for refined copper.