On July 30 local time, the White House announced that U.S. President Trump signed a proclamation imposing tariffs on several categories of imported copper products.

The proclamation states that, starting August 1, a 50% tariff will be broadly applied to imported semi-finished copper products (such as copper pipes, wires, rods, plates, and tubes) and copper-intensive derivative products (such as fittings, cables, connectors, and electrical components).

The White House noted that copper input materials (such as copper ore, concentrates, matte, cathode copper, and anode copper) and copper scrap are not subject to "Section 232" or equivalent tariffs.

Under Section 232 of the U.S. Trade Expansion Act of 1962, the U.S. president has the authority to impose tariffs or quotas on imports based on "national security" considerations.

Following the White House's tariff announcement, New York copper prices plummeted by over 18% to $4.60 per pound. Shares of North America's largest copper producer, Freeport-McMoRan, and Southern Copper fell by approximately 10% and 6%, respectively.

Natalie Scott-Gray, a senior metals analyst at StoneX Financial, commented that the new regulations and the singular focus on semi-finished products constitute a "massive market surprise."

Earlier on July 9, Trump had announced a 50% tariff on all copper imported into the U.S., effective August 1. At the time, New York copper futures surged to a historic high of nearly $6, triggering a rush to ship copper into the U.S. and generating substantial profits for some of the world's largest metal traders.

Prior to Wednesday afternoon, U.S. copper prices had been about 28% higher than the benchmark copper futures on the London Metal Exchange (LME), as the market had expected tariffs to apply to all refined metal imports.

The exclusion of refined copper from raw ore (i.e., "electrolytic copper") from the tariff list is expected to further disrupt global copper trade flows. Copper, widely used in applications like electrical wiring, is a critical metal for the global economy. Large quantities of copper shipped to the U.S. in recent months may now be re-exported.

Copper is the third most consumed metal globally, after iron and aluminum. According to the U.S. Geological Survey, the U.S. relies on imports for about half of its copper supply, with the majority coming from Chile.