Trump says 50% tariff on copper imports will begin Aug. 1

U.S. President Donald Trump said Wednesday that the 50% tariff connected copper imports, which helium had announced the erstwhile day, volition instrumentality effect connected Aug. 1.

The determination was made aft helium received a nationalist information assessment, Trump said successful a station connected Truth Social.

"I americium announcing a 50% TARIFF connected Copper, effectual August 1, 2025, aft receiving a robust NATIONAL SECURITY ASSESSMENT," Trump wrote.

"Copper is indispensable for Semiconductors, Aircraft, Ships, Ammunition, Data Centers, Lithium-ion Batteries, Radar Systems, Missile Defense Systems, and even, Hypersonic Weapons, of which we are gathering many. Copper is the 2nd astir utilized worldly by the Department of Defense."

Copper prices roseate 2.62%, pursuing Trump's latest announcement, extending its gains from the erstwhile league erstwhile it jumped 13.12% and recorded its champion one-day summation since 1989.

U.S. copper prices spiked connected Trump's 50% tariff announcement

Meanwhile, the three-month benchmark copper futures connected the London Metal Exchange were down 1.63% astatine $9630.50 a ton arsenic of 9.20 a.m. Singapore time, a reflection of the unusually wide premium that's processing betwixt U.S. copper and the metallic elsewhere.

According to London-based bureau Benchmark Mineral Intelligence, U.S. consumers could beryllium paying astir $15,000 per metric ton for copper, portion the remainder of the satellite pays astir $10,000 by August.

Copper is the third-most-consumed metallic globally, down robust and aluminum. The U.S. imports astir fractional of the copper it uses, with astir of it coming from Chile, according to information from the U.S. Geological Survey.

Earlier connected Tuesday, U.S. Commerce Secretary Howard Lutnick told CNBC's "Power Lunch" that the Trump medication wants to bring "copper accumulation home." He noted that Trump's determination volition bring copper tariffs successful enactment with U.S. duties connected imports of steel and aluminum, which Trump doubled to 50% in aboriginal June.

However, experts accidental that this volition instrumentality a portion earlier accumulation ramps up, and perchance decades to fulfill demand.

The U.S. reliance connected copper imports is simply a "vulnerability, but [the U.S. doesn't] person the capableness close present to offset imports," Carlos Miguel Gutierrez, who served nether President George W. Bush arsenic Secretary of Commerce, told CNBC's Emily Tan connected "The China Connection."

"Perhaps capableness volition beryllium online successful 2027 and 2028, assuming that there's a warrant that those tariffs volition enactment successful place."

Meanwhile, determination volition beryllium immoderate shortage of copper successful the U.S., and terms increases arsenic companies commencement to put successful accumulation capacity, said Gutierrez.

Sectoral tariffs, specified arsenic copper, steel, aluminum and pharmaceuticals, whitethorn beryllium utilized arsenic leverage successful "country negotiations," helium added, noting that Canada is besides a important exporter of copper to the U.S.

Adam Whiteley of BNY Investments said connected CNBC's "Squawk Box" that Trump's latest announcement is indicative of the commercialized argumentation that helium wants to protect.

"Copper is astir apt successful a 3rd class of tariffs, which is nationalist security. So we've got negotiating tactics, we've got addressing commercialized imbalances, and past the copper, oregon indeed, immoderate of the minerals, possibly semiconductors, possibly pharmaceuticals," Whiteley said.

British multinational probe steadfast BMI expects planetary copper excavation accumulation to summation astatine an mean yearly complaint of 2.9% from 2025 to 2034, with yearly output rising from 23.8 cardinal metric tons successful 2025 to 30.9 cardinal metric tons by 2034.

For this year, the firm's analysts expect planetary copper excavation output to emergence by 2.5% twelvemonth implicit twelvemonth successful 2025, supported by recovering accumulation successful Chile and the ongoing ramp-up astatine the Oyu Tolgoi excavation successful Mongolia.

Peru, Russia and Zambia are besides expected to beryllium among the large contributors to the emergence successful planetary output, the analysts wrote successful a Jul. 9 note.

— CNBC's Jenni Reid and Kevin Breuninger contributed to this report.