Trump Announces 50% Tariff on Copper Imports
In a move poised to further disrupt global trade, **President Donald Trump** announced a 50% tariff on copper imports to the United States. The announcement, made during a cabinet meeting, has already sent ripples through the markets.
Details of the Tariff
**President Trump** told reporters that “Today we are doing copper,”
and that he believes “the tariff on copper, we are going to make it 50 per cent.”
Commerce Secretary **Howard Lutnick** confirmed the tariff level during the meeting. However, the date it will take effect remains unspecified, and no executive orders were signed Tuesday.
The price of copper jumped 8.7% to $5.47 per pound following **Trump’s** declaration. Shares in the mining company Freeport-McMoRan also increased, rising by 4.6%.
Impact on Canada
According to Natural Resources Canada, the U.S. accounted for 52% of Canada’s copper export value in 2023, with total exports of copper and copper-based products valued at $9.3 billion. Despite this, Canada’s global copper reserves are estimated to be less than one percent.
Canada ranked 12th worldwide in copper production in 2023, trailing major producers like Chile, Peru, the Democratic Republic of Congo, China, and the United States. In response to potential trade disruptions, **Finance Minister Francois-Philippe Champagne** has urged Canadian provinces, territories, and municipalities to prioritize domestic steel and aluminum industries through strategic procurement policies.
Broader Trade Actions
The copper tariff announcement is a sign that **Trump** intends to pursue a wider range of sectoral levies beyond existing tariffs on steel, aluminum, and automobiles. He has previously cited national security concerns when launching investigations into copper and pharmaceuticals under Section 232 of the Trade Expansion Act of 1962. According to a report by the Congressional Budget Office, tariffs increase domestic prices and reduce U.S. gross domestic product (CBO, 2023).
Pharmaceutical Tariffs Loom
**Trump** indicated that duties on pharmaceuticals would be announced soon, suggesting a one-year grace period for manufacturers before implementation. “After that they’re going to be tariffed if they have to bring the pharmaceuticals into the country, the drugs and other things, into the country,”
**Trump** stated. “They’re going to be tariffed at a very, very high rate, like 200 per cent.”
These Section 232 tariffs are separate from **Trump’s** broader global tariff regime, the implementation of which was recently delayed to August 1 to allow more time for trade negotiations. While Canada was not targeted by these global tariffs, it has committed to reaching a bilateral agreement with the U.S. by July 21.
