- Copper price rises sharply as Trump said that he would impose a 50% tariff on metal imports.
- President Trump signaled his commitment to boosting domestic copper production and decreasing reliance on foreign sources.
- US Commerce Secretary Howard Lutnick said that the copper tariffs are expected to take effect by August 1.
Copper price (XCU/USD spot) extends its gains for the second successive session, trading around $5.65 per pound, during the Asian hours on Wednesday. The red metal price has gained more than 12.50% gains since US President Donald Trump, on Tuesday, told reporters at a White House cabinet meeting to impose a 50% tariff on Copper imports but he did not say when the tariff would take effect, per Reuters.
President Trump expressed his intention to strengthen domestic Copper production and reduce dependence on foreign supplies, as the US currently imports nearly half of its metal, primarily from Chile. The new tariff aligns red metal with the existing 50% duties on steel and aluminum, intensifying trade tensions and adding to volatility in the metals market.
Additionally, US Commerce Secretary Howard Lutnick told CNBC that the Copper tariffs will likely be implemented by the end of July or on August 1. In February, the administration launched a Section 232 investigation into US Copper imports. Although the probe was originally set to conclude by November, Lutnick confirmed that the review has already been completed.
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