Copper prices surge ahead after Trump calls for 50% tariffs

Copper is used in everything from consumer electronics and automobiles to home construction and data centres

Copper prices surged after US President Donald Trump said he planned to implement a 50 per cent tariff on imports of the commodity, a move that is likely to spark massive supply-chain ripples through global metal markets. Mr Trump added on social media that it would be effective on Aug 1 and that the decision was made after a national security assessment.

Copper, a critical mineral listed in many countries including the United States, is widely used in everything from consumer electronics and automobiles to home construction and data centres.

Mr Trump’s directive comes as the US and the rest of the world expect a dramatic surge over the coming decade in demand for the industrial metal, with data centres, automakers, power companies and others scouring the globe for feedstock to increase electric-vehicle output and electric grid capacity. Retooling power and transportation systems to run on renewable energy will require far more copper than the companies that produce it are currently committed to deliver.

Industry experts say the US currently imports about 50% of the copper it needs for use across an array of industries, from construction to autos to data centers. The United States' need for copper imports stems from a lack of necessary facilities to process and recycle enough of the metal domestically to meet demand.

There are still a lot of outstanding questions for the market, including the exact timeline for the potential tariffs. The industry is also awaiting further details on the types of copper shipments that would be impacted and whether there will be any exemptions. Mining officials in Chile, by far the biggest shipper of copper into the US, are among those waiting for details.

The US consumed about 1.6 million tonnes of refined copper in 2024, according to the US Geological Survey. While the US has significant mines, producing some 850,000 tonnes of primary copper in 2024, it still relies on imports from key trade allies to fill the need. Chile is the largest import source, accounting for 38 per cent of total import volumes, followed by Canada at 28 per cent and Mexico, with 8 per cent share. Net copper imports account for 36 per cent of demand, according to Morgan Stanley research.