Tariff Sparks Massive Sell-Off in Copper Market
President Donald Trump signed an executive order Wednesday imposing a sweeping 50% tariff on all copper imports. The move triggered an immediate market reaction, with U.S. copper prices dropping by up to 18% in after-hours trading. This sharp decline marks what could be the metal’s biggest single-day drop since 1989.
Major copper miners took a direct hit. Freeport-McMoRan shares fell about 10%, while Southern Copper lost over 6%. If losses continue into Thursday, it would signal deep concerns about rising input costs and disrupted global supply chains.
Tariff Policy Aims to Boost Domestic Metal Industry
The White House stated the decision aligns with earlier 50% tariffs imposed on steel and aluminum. According to a government fact sheet, the new copper duties are meant to strengthen domestic producers and correct ongoing trade imbalances. The tariffs are set to take effect this Friday.
Trump’s administration has doubled down on protectionist trade policies, arguing that higher tariffs can revive American manufacturing. However, economists have warned of unintended consequences, especially given copper’s broad industrial applications.
Concerns Rise Over Broader Economic Impact
Copper is essential in construction, electronics, and renewable energy infrastructure. Industry analysts caution that the tariffs may lead to higher costs for a wide range of products, from homes and electrical wiring to consumer gadgets. With the U.S. importing nearly half of its copper — mostly from Chile — manufacturers may face steep increases in raw material expenses.
The Tax Foundation warns that sector-specific tariffs, including those already targeting steel, autos, lumber, and pharmaceuticals, could collectively weigh down overall U.S. economic growth. As global supply chains are tested, businesses may slow investment or pass rising costs onto consumers.
Market Awaits Further Trade Moves
The copper tariff comes amid a series of trade investigations launched by the Trump administration. Future moves could target additional strategic materials or industries. Investors and policy experts are closely monitoring whether this aggressive trade stance will trigger retaliatory measures from key trading partners, especially Chile and other copper-exporting nations.
While the administration champions the tariffs as a win for U.S. producers, global markets are bracing for volatility as protectionist policies gain momentum.
