Donald Trump announced a new tax of 50% on copper entering the United States from foreign countries during a cabinet meeting broadcasted on television. This monumental increase in tariffs directly undermines the intent to promote domestic production. It tries to respond to the criticism that the way that imports harm national security.
Chile’s current position as the largest supplies of copper to the U.S. is closely followed by Canada. With the implementation of this new tariff, prices for copper in the United States surged almost immediately after Trump’s announcement. Secretary of Commerce Howard Lutnick had previously announced that the tax would go into effect by the end of the month. Significantly, he stressed the urgency of this new policy.
Regardless, a 50% rate seems to be in line with the tariffs placed on steel and aluminum products given last month. This uniformity is indicative of the Trump administration’s approach to trade. According to the U.S. Geological Survey, last year, the United States was a net importer of approximately 810,000 metric tons of refined copper. Surprisingly, it didn’t just meet that consumption—it almost doubled it!
Earlier this year President Trump ordered an investigation into the effect copper imports are having on national security. This industry-specific investigation led to the establishment of new, retribution-oriented tariffs. Most startlingly, Trump has promised tariffs as high as 200% on pharmaceutical products. He intends on allowing the pharmaceutical industry at least a year’s grace period to adjust to these new rules.
On the diplomatic front, Trump has been nothing short of remarkable in his outreach to leaders in 14 countries already. He has particularly cautioned South Korea and Japan of possible new charges. As August 1 looms, all of our trading partners are in an advanced stage of conversation with us. They’re trying to get agreements signed before the new tariffs go into effect.
“We’re going to make it 50%.” – Donald Trump
Trump is encouraged by the hard-hitting, mostly label-related EU negotiations so far. He suggested he may announce a new tariff rate in as little as three days. His administration has made no secret of its desire to increase tariffs on many different imported products. This change in policy would be momentous, both for the new international relations it would create and the domestic market it would upend.