U.S. President Donald Trump escalated his global trade war on Tuesday, announcing a massive 50% tariff on all copper imports. The surprise move, revealed during a Cabinet meeting, sent shockwaves through commodity markets, causing copper prices to surge to a record high.
Trump also signaled that more steep duties are on the horizon, specifically targeting pharmaceutical imports with a potential 200% tariff. However, he indicated that pharmaceutical companies would have a grace period of up to 18 months to move their production to the U.S. before those tariffs take effect.
The administration justifies the copper tariff on national security grounds, aiming to “bring copper production home.” Commerce Secretary Howard Lutnick confirmed the investigation into copper imports is complete and expects the tariff to be in place by the end of July. This brings copper in line with the recently doubled 50% tariffs on steel and aluminum. As expected, shares of domestic producers, such as Freeport-McMoran, jumped on the news.
These new sector-specific duties are separate from Trump’s broader “reciprocal” tariff plan. While he has repeatedly delayed those tariffs, the administration is now moving forward, imposing new rates ranging from 25% to 40% on 14 countries, including Japan and South Korea, starting August 1.
