Trump: US plans 50% copper tariff

New levy could be in place within weeks

- KATHARINE GEMMELL MARTIN RITCHIE

President Donald Trump sowed chaos in metals markets by indicating the US would implement a higher-than-expected 50% tariff on copper imports, spurring a record spike in New York futures and a drop in the global benchmark.

The plan, announced in an apparently off-the-cuff comment to reporters, marks the latest twist in a tumultuous period for industrial commodities, as the US leader aims to encourage more mining and smelting at home. He's already raised fees on steel and aluminium imports, while probes into flows of multiple other metals are in train.

Since February, when Trump declared “it's time for copper to come home” and aired the potential for levies, global traders have sent record volumes of the metal to the US to get ahead of implementation. A 50% tariff — which could be in place within weeks — signals an imminent end to that trade but injects new uncertainties, including on timing and potential exemptions for some large producers.

Citigroup Inc called it a watershed moment for copper, closing the window for significant shipments into the US market.

“The degree of impact will heavily depend on the details,” said Marcus Garvey, Macquarie Group's head of commodities strategy. “Not only the rate of any tariff but which forms of copper it is applied to, and whether or not there is any grace period ahead of its implementation.”