Trump Spares Copper Market From Worst With 50% Duty on Products
[Stay on top of transportation news: .]
President Donald Trump imposed a 50% tariff on all semi-finished copper products coming into the U.S. but stopped short of applying the duty to imported refined copper, sparing much of the domestic industry from potential higher costs.
Trump on July 30 issued a proclamation setting fresh duties on copper imports, but the scope was not as broad as many market participants expected. The new rates become effective Aug. 1, according to a White House fact sheet.
Prices of the metal fell as much as 18% before paring some of the losses to trade at $5.13 a pound as of 2:11 p.m. in New York.
Much of the U.S. market had anticipated some tariff on raw copper, the key input for wiring and other products that are ubiquitous for the homebuilding, construction and automobile industries.
RELATED: Copper-Laden Ships Race to Reach US Ahead of 50% Tariffs
The copper levies, which come under Section 232 of the Trade Expansion Act, will not stack on top of separate charges on automobile imports, which Trump put in place earlier this year, according to the White House. If a product is subject to auto tariffs, the import tax on vehicles will apply and not the copper duty, the White House said.
Trump took the rare step of invoking the Defense Production Act, a Korean War-era law that allows the president to direct industries to boost production of materials critical to national security, to require that 25% of high-quality copper scrap and forms of raw copper made in the U.S. to be sold domestically.
The percentage of certain raw copper materials mandated for U.S. sale would increase to 30% in 2028 and then 40% in 2029. The White House said the move is necessary to “boost U.S. refining capacity by ensuring low-cost inputs while domestic refiners grow their operations.”
Want more news? Listen to today's daily briefing belowor go here for more info:
