US Plans 50% Copper Tariff Sparks Global Market Shifts

In 2025, U.S. President Donald Trump announced a steep 50% tariff on copper imports, set to take effect by August 1, significantly disrupting global supply chains and market dynamics. The tariff aims to boost domestic copper production for critical infrastructure but has led to elevated U.S. copper premiums and a supply surplus as traders hoard inventories amid uncertain demand. The U.S. manufacturing sector's contraction and high inventory levels have contributed to a predicted decline in copper demand, while international markets, particularly in China, have seen falling copper prices and increased arbitrage trading due to price differentials. Indian exporters of downstream copper products face potential competitiveness losses in the U.S. market, risking reduced shipment volumes unless trade relief measures are introduced. Former Commerce Secretary Carlos Gutierrez highlighted U.S. dependency on imports as a vulnerability, noting the current inability to offset them domestically. These developments signal a major realignment in global copper trade, with supply chains and market participants adapting to the new tariff environment.