Trump’s 50 Percent Copper Tariffs Trigger Historic Price Hike
(MENAFN) US President Donald Trump’s decision to impose a 50% tariff on copper imports has driven prices to historic highs, reaching $5.81 per pound on international markets.
The administration began dispatching warning letters to nations struggling to negotiate trade deals with Washington, specifically targeting Japan and South Korea. These countries will face 25% tariffs starting August 1, alongside additional sector-specific tariffs. Goods routed through these nations will incur steeper charges, and the 25% tariff rate may increase if these countries retaliate or depending on their diplomatic ties with the US.
White House spokeswoman Karoline Leavitt confirmed that letters will be sent to 12 additional countries in the coming days, while the current tariff moratorium will be extended.
According to the correspondence, Malaysia, Kazakhstan, and Tunisia will encounter 25% tariffs; South Africa and Bosnia 30%; Indonesia 32%; Bangladesh and Serbia 35%; Cambodia and Thailand 36%; and Laos and Myanmar 40%.
In response to these trade escalations, Trump announced a 50% tariff on copper imports, driving prices up 10% since late June and 40% compared to the end of last year.
Rising concerns over global copper supply, combined with strong demand from China, also played a role in the price spike.
Copper miner Teck Resources reported operational disruptions at two Chilean sites, while inventory shortages pushed prices higher on the London Metal Exchange.
Additionally, seismic activity caused flooding in the underground section of the Kamo-Kakula copper mine in the Democratic Republic of Congo, further straining supply.
Zafer Ergezen, a futures and commodities expert, told media that the tariffs will sharply raise copper import costs from major US suppliers like Chile, Peru, and Canada, while supply shortages will become more pronounced.
“US copper producers and miners will gain a competitive edge and copper costs in the US may also suppress some of the demand,” he said, emphasizing Trump’s intention to curb imports.
Ergezen also noted China’s role as a leading global copper importer, suggesting that rising US prices could divert copper shipments from Chile, Peru, and Canada away from the US and toward China.
“It’s somewhat difficult for these tariffs to stay long term because the measures taken here will naturally benefit China,” he added.
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