U.S. President Donald Trump announced that he will impose a high tariff of up to 50% on imported copper.
Trump cited 'national security' as a justification for raising trade barriers on key industrial raw materials. He claimed that this measure would revive the copper industry in the United States. However, some experts expressed concern that the short-term increase in copper tariffs would lead to higher manufacturing expenses and pass the burden onto consumers.
On the 9th, Trump stated on his social media platform Truth Social, 'We will impose a 50% tariff on copper starting August 1.'
He emphasized that copper is 'essential for semiconductors, aircraft, ships, ammunition, and missile defense systems' and is 'the second most-used material by the Ministry of National Defense.'
Trump added, 'Foolish and sleepy leaders have destroyed this vital industry,' and said, 'This 50% tariff will reverse the thoughtless actions and stupidity of the Biden administration.'
President Trump directed the Department of Commerce in February to assess the impact of copper imports on national security.
Commerce Secretary Howard Lutnick explained, 'This is a measure to align with the previously imposed 50% tariffs on steel and aluminum.'
However, experts expressed skepticism about whether the copper tariffs would be effective in practice.
The United States relies on imports for about half of its copper demand, with major importing countries including Chile and other South American nations.
Ole Hansen, head of commodity strategy at Saxo Bank, pointed out, 'The United States is structurally short of copper, and there is no viable way to improve this issue in the coming years.'
He analyzed that this measure risks becoming a significant tax on copper consumers, which would make American manufacturing and infrastructure more expensive, rather than rapidly growing the domestic copper industry.
This suggests that instead of strengthening the domestic production base in the short term, it may increase the expense burden on corporations that depend on imports.
In particular, applying the new tariffs starting next month could lead to inflationary pressures from key raw materials spreading throughout the U.S. economy.
Copper is referred to as 'Dr. Copper' because its price trends can gauge the physical economy.
On the 8th, when the possibility of imposing tariffs was first raised, copper futures prices at the U.S. Commodity Exchange (COMEX) surged 13.1% in a day, reaching an all-time high of $5.69 per pound. This was the largest one-day increase since 1968.