The 50% tariff from Friday will apply to copper pipes, wires, rods, sheets and tubes, and to copper-intensive goods like pipe fittings, cables, connectors and electrical components, according to the White House statement.
In response, US Copper futures on Comex fell 20% after the announcement. Until then, US Copper prices were trading 28% higher than the benchmark futures on the London Metal Exchange (LME), in anticipation that this 50% tariff will apply to imports of all refined metal.Copper imports in the US saw a sharp surge when Trump had earlier flagged the possibility of tariffs on the metal. He triggered a further surge when the 50% tariff number was disclosed earlier this month, twice of what most market participants were expecting. Prices had hit an all-time high post that.
Refined Copper, also known as Cathode, play a key role in the global economy due to their widespread use in electrical wiring.“If cathode is excluded, the arb is over,” said Michael Haigh, head of FIC and Commodity Research at Societe Generale. The market “should approach parity again.”
According to the International Copper Association, the Trump administration heard concerns of the industry and made a “smart, strategic decision.”
However, there are still chances that refined Copper may see tariffs in the future. A proclamation published by the White House on Wednesday stated that the Department of Commerce had recommended a delayed imposition of import tariffs on refined metal, with the rate set at 15% starting in 2027, rising to 30% in 2028.
Trump has directed Commerce Secretary Howard Lutnick to provide a update on the US Copper market by June 2026 for him to determine whether a universal tariff on the refined metal is warranted.
“This is good news for Chile, for Codelco, and for our customers in the USA,” Codelco Chairman Maximo Pacheco said.
First Published: Jul 31, 2025 5:15 AM IS
