Shockingly, former President Donald Trump cut tariffs on copper imports. U.S. copper market is large and important to the economy. U.S. copper prices tumbled more than 17% on the Comex exchange. This sudden downturn rippled throughout the industry. The tariff was never about raising revenue, but to protect domestic production. Yet despite its touted impact, it has had no significant impact on the severely restricted U.S. copper mining industry.
BHP currently operates the largest copper mine in the world, Escondida in Chile. At the same time, Antofagasta is crucial for moving copper from Chile to the US. Together, both countries provide the majority of copper imports to the U.S. Since the recent tariff modification, domestic producers have expressed alarm that their respective plants will close in coming months. Our nation’s copper mining industry is pushing Washington to pass permitting reform right now. They hope these reforms can spur innovation in this critical, new economic infrastructure.
Antofagasta is keen to develop a new copper mine in the U.S. This new change could be huge. Market dynamics and local supply chains. U.S. regulations force that no more than 25% of this high-quality scrap made domestically is allowed to be sold within the country. This requirement adds unnecessary burdens on companies to enter or compete in this market.
Industry stakeholders have had a mixed reaction to the final adjustment of Trump’s tariff. Others think it would actually make prices more unstable. Yet critics say it doesn’t do enough to address the fundamental problems afflicting the U.S. mining sector. Freeport, the largest U.S. copper producer, has expressed alarm over the lack of tangible benefits from the tariffs on domestic production. These concerns are echoed by other stakeholders.
Despite this reversal, Trump hinted at the possibility of imposing further tariffs on copper imports in the future, stating that “Copper is being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States.” This statement highlights the trade policy tensions that continue to exist and impact the intersection of trade and national security.
With the tariff’s rollback, enormous market corrections are already in progress. Tom Price, a market analyst, noted that “Markets are now busily repricing refined copper much lower after Trump’s epic backflip on his own import tariff policy.” He further elaborated, “Someone must have finally got through to [Trump] that the U.S. economy simply can’t afford this new trade-hit.” These comments are very much in line with larger worries about economic uncertainty at a time of dramatic and unpredictable trade policy.
Chile’s Codelco, the world’s largest copper producer, welcomed the decision to exclude cathodes from tariff considerations. They see it as a win—not just for Codelco—but for Chile. This change could improve Codelco’s competitive position, while relieving supply chain stresses in the U.S. market.
Never in history has a sitting U.S. He has requested a quarterly progress update from investment banker Howard Lutnick on the state of the domestic copper market by no later than June 2026. This timeline indicates that stakeholders in the industry are going to be highly motivated to engage and push for better trade policy. They’ll discuss what it means for domestic production.