Copper prices surge in US as Trump announces 50% tariff

Copper prices in the US reached a record high after Donald Trump announced a 50% tariff on the metal as part of his trade war strategy.

During a cabinet meeting, Trump proposed the tariff rate for copper imports and also mentioned a potential 200% border tax on pharmaceuticals in the future.

The president's shifting tariff announcements caused confusion, with rates for multiple nations set to go into effect on August 1 instead of the previously reported July 9.

Following his social media posts, Trump emphasized that there would be no extensions beyond the new deadline for imposing tariffs.

As a result of the tariff threat, copper futures in the US surged over 10% to an all-time high of $5.682 per pound before settling at $5.662.

Meanwhile, copper prices dropped in other parts of the world due to concerns that the US tariff could impact global demand for the metal.

Commerce secretary Howard Lutnick anticipated the implementation of copper tariffs by the end of the month or early August, affecting various industries that rely on copper for their products.

Experts predict that the new metal levy will lead to inflation in the US and deflation internationally, impacting the economy and various sectors.

Analysts warn that the US lacks sufficient capacity to be self-sufficient in copper, potentially resulting in higher prices compared to other regions.

Trump also hinted at possible future tariffs on pharmaceuticals and imported chips, with plans to introduce new levies in the coming year.

According to the source: The Guardian.