Trump’s Copper Tariff Threat: U.S. Supply Chains Brace for Chaos

Copper markets are about to get rocked—and not in a good way. Former President Trump’s proposed tariffs on copper imports could send shockwaves through U.S. supply chains already stretched thin. Here’s why Wall Street’s sweating.

Supply Chain Whiplash

From EVs to infrastructure projects, copper’s the unsung hero of the green transition. Slap tariffs on imports, and suddenly every contractor, manufacturer, and crypto miner (yes, they need it too) faces a brutal cost squeeze. Guess who’ll pass that bill to consumers?

The Inflation Wildcard

Higher copper prices mean pricier wiring, pricier batteries, pricier everything—just as the Fed thinks it’s tamed inflation. Cue the ‘I told you so’ from gold bugs and Bitcoin maximalists.

Bonus Finance Jab: Meanwhile, hedge funds will short copper futures while lobbying against the tariffs—because why pick a side when you can profit from chaos?

Canada promises to fight back against copper tariff

Similarly, Canada which is ranked as the United States’ second-largest import source of copper, has opposed the measure.

Canadian Industry Minister Melanie Joly termed the MOVE “illegal” and promised to fight back. She warned the levies would hurt Canadian labor and breach international trade agreements.

Arriagada also observed that, following implementation of the 50% duty, U.S. purchasers would turn to existing inventories, which could suppress near-term consumption. According to Macquarie’s team, it may take roughly nine months for American stockpiles to return to typical levels, although the broader market fundamentals stay largely in equilibrium.

Bloomberg Intelligence figures indicate that over the last year, America’s domestic ore yielded approximately 850,000 tonnes of refined copper, while imports totaled about 810,000 tonnes. Secondary sources and stock releases accounted for roughly five% of consumption.

The country’s two active smelting facilities process only a fraction of that output, leaving around fifty% of mined ore to be exported, approximately half of which is destined for Chinese markets.

Bloomberg Intelligence analysts Alon Olsha and Richard Bourke caution that absent extended levies on intermediate copper products, America will remain reliant on imports and face ongoing cost pressure.

“Without broader incentives and tariffs on semi-finished goods, import reliance will likely persist and hurt copper consumers,” they wrote.

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