U.S. Tariffs Rattle Copper Markets, Spark Uncertainty for Global Trade

Copper prices plunged as much as 6.2% on Comex following President Trump's surprise announcement of a 50% tariff on imports, effective August 1. The abrupt policy shift left markets scrambling, with Chile—supplying half of U.S. copper imports—pledging to negotiate exemptions during upcoming trade talks in Washington.

Chilean Finance Minister Mario Marcel signaled a diplomatic approach, citing precedent for raw material exemptions like UK steel. "Retaliatory tariffs WOULD only harm Chilean consumers," he told Radio Duna, while emphasizing copper's critical role in bilateral trade. The uncertainty has already distorted markets, with traders front-running shipments to U.S. ports ahead of the tariff deadline.

U.S. manufacturers face mounting cost pressures, as domestic industries lack viable alternatives to imported copper. Analysts warn the tariffs could disrupt supply chains across electronics, construction, and renewable energy sectors—industries heavily reliant on the conductive metal.