Copper prices shot up to record highs on Tuesday after President Donald Trump said he plans to slap a 50% tariff on the metal, sparking concerns about rising costs across construction, manufacturing, and electronics.
Tuesday marked the biggest single-day price jump ever recorded for the metal
Aaron Schwartz/CNP/Bloomberg via Getty Images
Copper prices shot up to record highs on Tuesday after President Donald Trump said he plans to slap a 50% tariff on the metal, sparking concerns about rising costs across construction, manufacturing, and electronics.
Copper futures jumped more than 9.5% by mid-afternoon to $5.51 per pound. Earlier in the day, prices had surged as much as 13%, marking the biggest single-day price jump since records began in 1968, according to Dow Jones Market Data.
Trump set off the rally during a cabinet meeting, telling reporters, “I believe the tariff on copper, we’re going to make it 50%.” During his first term, his trade war targeted steel and aluminum, but copper had mostly escaped — until now.
Copper is used in everything from electrical wiring and building construction to cars, phones, and industrial machinery. A tariff like the one proposed by Trump could ripple through supply chains, driving up prices for companies and consumers alike.
The U.S. produces a lot of copper domestically but still relies heavily on imports. Last year, the country produced about 850,000 tons of refined copper and imported roughly 810,000 tons, according to the U.S. Geological Survey.
The 50% tariff on imported copper matches with 50% tariffs on steel and aluminum.
The remarks come after the Trump administration sent 14 letters on Tuesday to trade partners that threatened to reimpose tariffs on South Korea, Japan, Thailand, Malaysia, and others on August 1, unless those foreign governments strike trade deals deemed favorable to the U.S.
Commerce Secretary Howard Lutnick said in a CNBC interview later Tuesday that between 15 and 20 letters will be sent to foreign governments in the next two days. He added that the copper levy will kick in either late July or August 1.
"The idea is to bring copper home," Lutnick said. "We need that kind of production in America."
—Joseph Zeballos-Roig contributed to this article.
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