Copper Surges to Record as 50% Import Duty Looms

The price of copper (HG) in the US jumped to a record high of $5.68 per lb on Tuesday, 8 July, after President Donald Trump signalled he would impose a 50% tariff on the metal by the end of the month. The intraday price spike was the biggest since 1989 as commodity futures traders scrambled to reposition for the likely disruption of copper supplies. (Source: Forbes)

Here’s what you need to know:

Copper Price Performance

The baseline copper chart shows the price briefly rising over $5.00 per lb in March but dropping back again in April as tariff concerns receded and the 90-day pause was announced. By the end of June, copper prices had recouped most of their April losses and crept back over the $5 threshold, only to surge as much as 17% yesterday (8 July) on news of the upcoming 50% tariff. 

*Past performance does not indicate future results 

Trump Threatens New 50% Copper Tariff

Copper futures spiked as much as 17% on Tuesday to a record $5.89 per pound (the biggest intraday jump since 1989) before closing the day up 13% at $5.68. Copper prices have risen an epic 38% this year. 

The surge followed comments from President Trump during a Cabinet meeting, where he announced plans to impose a 50% tariff on copper imports. Commerce Secretary Howard Lutnick said the measure could take effect by the end of the month.

Prices had already risen based on expectations of impending new tariffs on copper after the White House ordered an investigation into the matter. However, the 50% rate has seemingly caught many traders off guard, coming in much higher than industry expectations.

Back in February, the administration warned that global copper producers could pose a “direct threat to national security and economic stability,” pointing out that while the US has “ample” reserves, its smelting and refining capacity “lags significantly.” Lutnick said the investigation is now complete but did not disclose any specific findings.

Implications For Copper Price & Copper Mining Stocks

Copper plays a critical role in military hardware, making it a national security concern for the Trump administration. It is also used in electric vehicles (EVs) and construction. Existing US tariffs on the metal are generally well below 50%.

According to the US Geological Survey, the US imports just over half of the refined copper it consumes. Of those imports, roughly 38% come from Chile, 28% from Canada, and 8% from Mexico.

Some economists have suggested that price increases could be temporary as extra stockpiling ahead of tariffs eventually tails off. The lasting implications will likely depend on the finalised tariff rates and any exceptions agreed after negotiations with the copper exporting countries.- for

Moreover, shares of copper miners saw sharp swings Tuesday. Freeport-McMoRan (FCX) jumped nearly 9% intraday before closing up 2.5% at $46.47, while Southern Copper (SCCO) rose 4.7% before reversing to end down 1.4% at $103.00.

Conclusion

Copper's record-breaking rally again proves the market’s ongoing sensitivity to trade policy, especially when it directly affects a commodity's supply and demand. While copper prices may stabilise once initial stockpiling eases, the long-term outlook will hinge on the final terms of any import duties and how exporting nations respond. Traders and manufacturers alike will be watching closely for further developments in the weeks ahead.

*Past performance does not indicate future results