U.S. President Donald Trump has dropped a trade policy bombshell, slapping a 50% tariff on all imported copper starting August 1. The move, framed as a national security measure, sent shockwaves through global markets and left analysts scrambling to assess the fallout. 💥
Markets in Chaos, Prices Soar
Copper futures on the COMEX exchange skyrocketed 13% after Trump’s initial tease of the policy Tuesday, hitting $5.61 per pound by Thursday. Investors are now bracing for prolonged volatility as industries from EVs to renewable energy face higher costs. 🔋⚡
Why This Hurts the U.S.
Here’s the catch: America produces just 4.8% of the world’s copper. With nearly half its demand met by imports, experts say the tariff could backfire. "The U.S. is structurally short on copper," warns Saxo Bank’s Ole Hansen. "This won’t fix supply chains—it’ll just make everything pricier." 📉
Data shows U.S. copper production fell 3% in 2024, while imports doubled in early 2025 as companies raced to stockpile before the tariff hits. Citigroup calls it a "watershed moment" that could reshape global trade flows. 🌊
What’s Next?
Will this boost U.S. mining? Not anytime soon, analysts say. Instead, industries like construction and semiconductors may face budget squeezes. Macquarie’s Marcus Garvey notes the tariff’s final impact hinges on details like grace periods and exemptions—but for now, the world is watching. 👀
