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Trump announces a 50% tariff on Copper Effective August 1

The U.S. president Donald Trump announced a new tariff of 50% on copper that will begin on August 1, in an effort to promote the domestic development of a critical industry for defense, electronics and autos.

This is the latest of a series of tariffs Trump has imposed on sectors such as steel, aluminum and other metals. Economists have warned that this will increase costs for American consumers.

Trump announced on Tuesday that he would be imposing new tariffs on the copper market, causing U.S. Comex futures copper prices to reach record highs.

In February, the White House launched a Section 232 inquiry into copper imports. This was done using a law which gives the president the authority to impose higher duties based on national-security grounds.

Trump said that on Wednesday he had received a "robust", national security assessment which concluded that tariffs were needed to protect U.S. manufacturing of a commodity critical in a variety of industries.

Trump stated in a Truth Social post that "Copper is essential for Semiconductors, Aircraft, Ships, Ammunition, Data Centers, Lithium Ion Batteries, Radar Systems, Missile Defense Systems, Hypersonic weapons, which we are currently building."

According to the U.S. Geological Survey, nearly half of America's refined copper requirements will be imported in 2024. The U.S. is expected to import 810,000 metric tonnes.

According to U.S. Census Bureau statistics, the countries most likely to be affected by this tariff are Chile and Canada, who were the U.S.'s top suppliers of refined copper and copper alloys in 2024.

Chile, Canada and Peru told the administration their imports do not pose a threat to U.S. interest and therefore should not be subjected to tariffs. All three countries have free-trade agreements with the U.S.

The high tariffs are designed to encourage the production of copper in the U.S., as more than two thirds of it is mined there. However, the massive new mine that Rio Tinto and BHP had planned has been in limbo for over a decade.

(source: Reuters)