Source: Sharecast
Announcing the latest salvo in his global trade war, the US president said before a cabinet meeting on Tuesday: "Today we’re doing copper." He added that the levy would likely be 50%, higher than the 25% the market had been expecting.
Commerce secretary Howard Lutnick later said in a CNBC interview that he expected tariffs to be put in place by the end of July or early August.
Prices surged in response as traders looked to bolster supplies ahead of any duty becoming effective.
US Comex futures soared by a record 12% in New York, hitting fresh highs, and by 0930 BST on Wednesday were trading at $5.66 per pound.
Prices eased on the London Metal Exchange, however, on concerns that tariffs would weigh heavily on global demand and reduce consumption in the US.
Copper is used widely in the electronics, construction and industrial equipment sectors.
Citi analysts told the Financial Times: "We think this is a watershed moment for the copper market in 2025, as imminent flagged tariff implementation should abruptly close the window for further significant US-bound copper shipments, possibly for the rest of 2025."
Neil Wilson, UK investor strategist at Saxo Markets, said: "No one will want to ship to the US and London prices fell to widen the spread. This will have huge implications for a range of industries, from autos to energy."
Derek Halpenny, analyst at MUFG, said: "As is often the case with announcements from Trump, there is a lack of detail in terms of what form of copper this would cover and how quickly this tariff would be implemented.
"A 50% tariff will be most impactful on Chile and Canada; these two countries make up a little overs 75% of all imported copper to the US.
"Around 45% of copper consumption in the US is imported, underlying the inability to shift away from imported and soon-to-be highly-tariffed imported copper. This will be negative for US industry and for US consumers, with inflation creeping into products in many sectors."
Trump's comments on copper were part of a flurry of developments in his escalating trade war this.
In addition to the 50% levy on the metal and various country-specific updates, he also confirmed that long-threatened duties on pharmaceuticals and semiconductors would soon be introduced.
Tariffs on pharmaceuticals could be as high as 200%.
