President Donald Trump revealed plans on Tuesday to impose a sweeping 50% tariff on all copper imported into the United States. The announcement came during a Cabinet meeting, although no official timeline was provided for when the tariff would take effect. This move marks the fourth major tariff introduced during Trump’s second term, joining existing tariffs on imported cars (25%), and steel and aluminum (both at 50%).
Trump Eyes 200% Drug Tariff, Delays Reciprocal Tariffs Amid Global Trade Negotiations
The copper tariff follows a Section 232 investigation initiated in February, a legal mechanism that allows tariffs on the grounds of national security. Copper is essential in the manufacturing of electronics, vehicles, and machinery. With the U.S. importing $17 billion worth of copper last year—$6 billion of which came from Chile—analysts warn the tariffs could significantly raise costs for American manufacturers and consumers.
Trump Announces 50% Copper Tariff, Eyes 200% Drug Tax Amid Expanding Trade Crackdown
Trump’s announcement triggered an immediate spike in copper prices, with New York copper futures jumping as much as 15%, reaching a record $5.68 per pound. Overall, copper prices have surged 38% this year amid speculation and stockpiling in anticipation of the tariffs. Analysts like Ed Mills of Raymond James and Ole Hansen of Saxo Bank expressed concern that the move represents a heavy tax burden and may ultimately hurt U.S. businesses and consumers.
Trump Targets Drug Imports with 200% Tariff, Extends Reciprocal Tariff Pause to August
Trump also signaled forthcoming action on pharmaceutical imports, declaring a possible 200% tariff, though he admitted implementation could be delayed. While drugs were exempted from tariffs during his first term, a recent investigation launched in April laid the groundwork for imposing tariffs on national security grounds. Trump argues that boosting domestic drug manufacturing is essential to reducing dependence on foreign supply chains.
In addition to the copper and pharmaceutical tariffs, Trump extended a pause on “reciprocal” tariffs until August 1. Originally enacted in April and temporarily halted, these tariffs were set to resume imminently. The administration is currently engaging with international leaders, sending letters outlining possible tariff rates pending new negotiations. This suggests an aggressive and evolving trade strategy that may reshape U.S. global trade relations in the coming months.
