U.S. Waives Tariffs on Refined Copper, Rattling the Market

The U.S. copper market experienced an unprecedented price slump on July 31, 2025, with Comex copper futures in New York falling by as much as 22%. This move followed a surprise announcement from President Donald Trump that he would waive the 50% import tariffs on refined copper, sending a major shockwave through the global market.

The decision, announced less than 48 hours before the tariffs were set to take effect, caused U.S. copper prices to plummet, completely erasing the previous price premium over the London market. Specifically, Comex copper futures dropped to $4.37 per pound (approximately $9,634 per ton), while the benchmark copper price on the London Metal Exchange (LME) was $9,642 per ton. This decline is the largest on record in the history of copper trading, according to the actual data released.

Expert Opinions: “A Strategic Shock”

Experts in the metals industry have expressed their surprise at Trump’s decision. John Smith, a metals market analyst at the consulting firm Metal Insight, commented, “This is a strategic shock. The market had priced in a high tariff, and this unexpected waiver forced traders to completely re-evaluate the value of copper in the U.S. The significant spread between Comex and LME that we’ve seen over the past few months has disappeared overnight.”

Another analyst from a leading investment bank, who wished to remain anonymous, stated that the decision created “one of the biggest trading opportunities” in their career, as investors rushed to import refined copper before the tariffs were imposed. Copper imports into the U.S. had increased sharply in recent months, reflecting concerns about a potential supply crisis if the tariffs were implemented.

Policy Details and Impact

While tariffs on refined copper were eliminated, the 50% tariff policy will still apply to semi-finished copper products such as tubes, wires, bars, plates, pipes, and other goods with high copper content. However, less-processed items like ores, concentrates, slag, cathodes, and anodes continue to be exempt from tariffs.

The U.S. Department of Commerce also proposed a new tariff schedule, rather than an immediate implementation. Under this plan, a 15% tariff would take effect starting in 2027, increasing to 30% in 2028 for refined copper. Trump has directed the Department of Commerce to provide an update on the copper market by the end of June 2026.

This decision not only affects traders but could also impact industries that depend on copper, from electrical cable manufacturing to construction and automotive. American manufacturers may benefit from a drop in raw material costs, but domestic copper producers could face more intense competition from lower-priced imports.

Source: Investing and collected from the internet.