President Trump announced a 50% copper tariff on Wednesday, adding to 50% tariffs on steel and aluminum. While some forms of copper are exempt, like cathodes and concentrates, copper futures on the Comex exchange are still taking a massive hit from the new policy and are down by nearly 22% at the time of writing.
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If the selloff holds, it would mark copper’s largest single-day price decline since at least 1968. Trump first warned of copper tariffs in February, resulting in companies stockpiling the metal in the U.S.
White House Stresses U.S. Copper Deficit
“Foreign competitors’ predatory practices and excessive environmental regulations have undercut the American copper industry and domestic investment in smelting, refining, and fabrication facilities,” said the White House in a fact sheet, adding that the U.S. has a significant and unsustainable trade deficit in copper.
Trump’s copper tariffs are set to take effect on Friday. Copper stocks, like Freeport-McMoRan (FCX), Southern Copper Corp (SCCO), and Ero Copper Corp (ERO), took a hit on Wednesday but are recovering today.
