INSUBCONTINENT EXCLUSIVE:
President Donald Trump declared copper a national security priority on February 25, directing Commerce Secretary Howard Lutnick to
investigate imposing a 25% tariff on all copper imports.The White House states this action addresses vulnerabilities in domestic copper
supply chains and reduces dependence on foreign sources
Copper prices jumped 5% after Trump suggested the proposed 25% tariff might arrive sooner than expected.The metal serves as an essential
component in defense applications, infrastructure projects, and emerging technologies like electric vehicles and artificial intelligence
systems.Trump signed the executive order initiating a Section 232 investigation under the Trade Expansion Act of 1962
This law allows the president to restrict imports deemed harmful to national security interests
The Commerce Department must complete this investigation within 270 days.The United States currently imports approximately 45% of its copper
consumption, creating potential supply vulnerabilities
Chile supplies 70% of U.S
refined copper imports, with Canada and Mexico accounting for another 19%.Trump Moves to Add Copper to Metal Tariff List, Prices Surge
(Photo Internet reproduction)Goldman Sachs analysts predict the tariff will trigger a 50-100% increase in U.S
copper imports during coming months
This surge aims to build inventory before tariffs take effect
copper inventories to rise by 200,000-300,000 tons by the end of September.U.S
Tariffs and the Copper MarketPhysical copper traders already exploit price differences between U.S
The CME copper contract trades at a premium to the London Metal Exchange, creating profitable arbitrage opportunities.American manufacturers
face significant cost increases if tariffs take effect
Industries relying heavily on copper include automotive manufacturing, electronics production, telecommunications, and construction
tariffs, which took effect today
The administration eliminated all country exemptions, expanded product coverage, and set rates at 25% for both metals.The tariffs aim to
revitalize domestic metal production capacity that administration officials claim unfair trade practices undermined
could become unavailable during potential conflicts.
