US copper prices reached an all-time high on Tuesday following President Donald Trump’s announcement of 50 percent tariffs on the metal as part of his ongoing trade war.
Trump indicated the tariffs during a cabinet meeting, stating, “Today we’re doing copper,” and suggesting the rate would be 50 percent.
The news of the impending tariffs led to a surge in demand for copper, a crucial material in electronics, construction, and industrial equipment.
Commerce Secretary Howard Lutnick mentioned in a CNBC interview that the copper tariffs could be implemented by the end of the month or early August.
In response to the announcement, copper futures in New York rose by 13 percent to a record high of $5.69 per pound.
Chile, the largest supplier of refined copper to the US, expressed concerns over the potential impact of the tariffs on its trade conditions.
Analysts predicted that the copper market could see significant changes due to the proposed tariffs, affecting US-bound copper shipments for the remainder of the year.
Trump’s move to impose tariffs on copper comes amid similar actions against other trading partners, including threats of steep levies on pharmaceuticals and other critical sectors.
Trump’s actions have created uncertainty among US trading partners, with only the UK managing to secure some relief from the sectoral tariffs through negotiations.
As the trade war continues, the global market awaits further developments in the ongoing trade disputes initiated by the Trump administration.
Additional reporting by James Politi in Washington