Trump shocks markets with scaled-back copper tariff; US prices plunge

The US will impose a 50 per cent tariff on copper pipes and wiring, said President Donald Trump on July 30, but details of the levy fell short of the sweeping restrictions expected and left out copper input materials such as ores, concentrates and cathodes.

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The surprise move dragged down US copper prices more than 17 per cent on the Comex exchange and unwound a premium over the London global benchmark that had grown in recent weeks, with shipments diverted there in anticipation of higher domestic prices.

"Markets are now busily repricing refined copper much lower after Trump's epic backflip on his own import tariff policy," said Mr Tom Price, an analyst at London brokerage Panmure Liberum.

"Someone must have finally got through to (Mr Trump) that the US economy simply can't afford this new trade hit."

Freeport-McMoRan is likely to be among the most harmed by the trimmed tariff, according to RBC Capital Markets, with Hudbay Minerals, Arizona Sonoran and others developing mines in the country also affected.

Mr Trump first teased the tariff in early July, implying that it would apply to all types of the red metal, ranging from cathodes produced by mines and smelters, to wiring and other finished products.