Trump Exempts Refined Copper From August 1 Tariffs

President Donald Trump announced a 50% tariff on certain semi-finished copper products, such as pipes, wires, and electrical components, effective August 1, while exempting raw and refined copper forms like ore and concentrates. The unexpected exemption of refined copper caused U.S. copper futures and global prices to plunge by up to 20%, driven by a rapid unwinding of speculative positions and a drop in the domestic premium over global prices. The administration cited national security and domestic manufacturing as motivations, though experts argue the move offers limited direct support to U.S. copper mining. The order also invokes the Defense Production Act, requiring a rising share of U.S.-produced copper scrap and input materials to be sold domestically in future years. Market volatility has increased, inventories on exchanges have surged, and shares of major copper producers like Freeport-McMoRan have fallen sharply. Analysts warn that while refined copper is currently spared, phased tariffs on it remain possible.