Former President Donald Trump popularized the idea when he signed an executive order calling for a universal 50% tariff on all copper imports. That bold reversal has caused a tsunami across the metal market. The new tariff rates went into effect on a Friday. This amendment is the biggest shift in U.S. trade policy as Trump tries to shield domestic industries and circumvent foreign imports that he perceives as threats to national security.
Indeed, the United States is almost entirely dependent on imported copper, with foreign countries providing around 48 percent of U.S. copper consumption. Third, Chile remains the leading supplier, supplying most of the copper that will be used in Chile itself. This dependence on foreign imports is what makes the new tariffs so significant and far reaching.
Right after hearing the news, U.S. copper prices dropped by up to 18% in after-hours trading. If this sell-off persists into Thursday’s trading session, it would represent the metal’s largest single-day decline since 1989, reflecting investor concerns regarding market stability and supply chain disruptions.
Copper also plays an essential role in the U.S. economy, serving as the third-most-consumed metal behind iron and aluminum. Its widespread application in construction, electrical uses, and manufacturing highlight the importance of this key commodity across all facets of the economy. The unexpected five-fold increase in tariffs brings questions on how significantly prices will be affected for consumers and businesses that rely on copper components.
In conjunction with this announcement, the White House released a fact sheet outlining the justification for increasing the tariff. Officials identified national security threats associated with copper imports as a main factor motivating this decision. This latest move is an illustration of Trump’s larger strategy to outmaneuver opponents through the confusion of macro pressure. He’s previously used sector-specific tariffs to target imports of autos, lumber, and pharmaceuticals.
The Tax Foundation recently cautioned that Trump’s trade investigations are making the domestic economy worse. Furthermore, sector-specific tariffs would have a direct impact on depressing overall economic growth. Analysts have lamented that the administration’s tariffs are supposed to help protect nascent domestic industries. These measures often lead to unintended consequences that set off a chain reaction of negative impacts through the economy.
As businesses continue to consider the impacts of these new tariffs, fear of higher construction material costs will continue to be top of mind. On July 9, 2025, a New York City residential reconstruction store featured nothing but copper pipes. She added that it underscored the deadly consequences of underfunding infrastructure and the critical role that copper plays in our everyday lives.