U.S. Copper Prices Crash 20% After Trump Exempts Refined Copper from New Tariffs
The U.S. copper market saw a historic single-day decline following a surprise decision by President Donald Trump to exclude refined copper from upcoming import tariffs. According to the White House announcement made Wednesday, a 50% tariff on semi-finished copper products and copper-intensive products will take effect on August 1, but high-purity refined copper — commonly referred to as cathodes — will not be subject to the new duty.
According to data from the New York Mercantile Exchange (COMEX), copper futures plunged nearly 20% on the news. The most actively traded copper contract dropped by 19.6% to $4.5235 per pound by 4:15 p.m. ET, marking its lowest level since early May.
Industry analysts say the market had largely priced in expectations that all forms of imported copper, including refined metal, would be taxed. U.S. copper prices had previously surged to a 28% premium over the London Metal Exchange (LME) benchmark, as traders rushed to bring in shipments ahead of the tariff deadline.
“If cathode is excluded, the arb is over,” said Michael Haigh, head of FIC and Commodity Research at Societe Generale. The market “should approach parity again.”
This marks yet another major policy shift in Trump’s approach to metals tariffs, with significant ripple effects across global copper supply chains. Earlier this year, the launch of a tariff investigation sent U.S. copper prices soaring. Earlier this month, the announcement of an unexpectedly high 50% tariff caused prices to reach new record highs.
Now, the exemption of cathodes has triggered the opposite effect — a dramatic reversal. As a result, large volumes of copper stockpiled at U.S. ports in anticipation of the tariff may now be rerouted or re-exported, further disrupting global copper trade flows.
Traders and manufacturers alike are bracing for further volatility as the market recalibrates to the latest development in U.S. trade policy.
Source: The White House, Bloomberg
