Trump’s Proposed 50% Tariff Sparks Turmoil in Global Copper Market
US president Donald Trump’s threat of a 50% tariff on copper has thrown the global market for the base metal into turmoil.
After hitting record highs when the move was announced, prices have pulled back somewhat as commodity watchers contemplate how the proposed tariff would impact future trade, even though the White House is yet to issue an executive order to implement the policy or even release full details of the proposal.
Nevertheless, leading copper producing nations are already voicing concerns, with Chile and Canada – which supply a combined 86.8% of US copper imports – warning that America will struggle to close the domestic supply gap.
No Official Communication
“Until now, there has been no official communication from the United States, which is why we are unaware of the exact measures that will be taken,” chair of Chile’s National Copper Corporation, Máximo Pacheco, told Platts.
“It is not clear, for example, whether this tariff will apply to all copper products, including cathodes; nor do we know if there will be exceptions for some countries like ours.”
Meanwhile, the Canadian Mining Association has warned the copper tariffs would put pressure on US markets and the Minerals Council of Australia (MCA) has also lashed out at the move.
Global Trade Disruptions
MCA chief executive officer Tania Constable said President Trump’s tariff measures were disrupting global trade, undermining investment confidence, and increasing costs for consumers, including those in the US.
“As the treasurer has recently made clear, the global economic environment is increasingly volatile and unpredictable,” Ms Constable said.
“In that context, sudden and sweeping trade actions only heighten uncertainty and constrain the ability of businesses to plan, invest and grow—the right response is not to raise barriers, but to make economies more resilient, productive and globally connected.”
“While Australia’s direct copper exports to the US are limited, trade restrictions imposed on other key trading partners have the potential of disrupting global supply chains, increasing costs, and creating uncertainty for Australian exporters.”
Copper Earnings in Jeopardy
Prior to the tariff news, analysts were forecasting Australia’s copper export earnings to climb from $11.4 billion in 2023–24 to $13.2b in 2024–25, and $18.2b in 2026–27.
“As geopolitical risks rise and others turn inward, Australia has the opportunity to step forward by deepening and securing supply through trade partnerships, expanding export markets, and reinforcing our position in global supply chains,” Ms Constable added.
“That means continuing to position Australia as a trusted, low-risk partner for critical minerals and resources.”