WASHINGTON: US President Donald Trump imposed revised import tariffs on copper, excluding raw metal from a 50% levy on semi-finished products.
The decision led to a sharp drop in copper prices, reversing earlier gains triggered by tariff speculation.
Copper prices fell nearly 20% after the White House confirmed raw and refined copper would not face the new duty.
The metal, crucial for defense, AI, and green energy sectors, had surged earlier this month when Trump first hinted at broad tariffs.
Chile, the world’s largest copper producer and a key US supplier, welcomed the exemption.
Maximo Pacheco, president of Chilean state miner Codelco, said, “An initial reading allows us to conclude that tariffs will not be applied to copper cathodes, allowing us to continue supplying that market.”
The US imports 45% of its copper needs, with Chile providing 51% of those shipments. The White House justified the tariffs under national security concerns, citing reliance on foreign semi-finished copper.
The Defense Production Act will restrict some US copper exports to support domestic industry.
Tariffs on copper products and automobiles will not stack, easing investor concerns. Copper had hit a record $5.80 per pound earlier this month amid tariff fears. - AFP
