Copper futures fall over 21% after Trump's tariffs

Copper prices dropped sharply during Thursday’s trading session, weighed down by a stronger US dollar and market reaction to the latest tariff measures introduced by President Donald Trump on the industrial metal.

The White House announced in an official statement on Wednesday that President Trump had signed a proclamation to impose a 50% tariff on certain copper imports, citing national security concerns.

According to a fact sheet released by the White House, the measure targets semi-finished copper products and derivatives with high copper content, effective August 1st.

The statement clarified that the new tariffs will not apply to copper scrap or primary input materials used in copper production, such as ores, concentrates, mattes (partially smelted products), cathodes, and anodes.

This move follows a Section 232 investigation initiated in February at the direction of President Trump.

In addition to the tariffs, the presidential order calls for measures to support the domestic copper industry, including requiring US producers to sell 25% of high-quality copper scrap generated within the country into the domestic market.

Meanwhile, the US Dollar Index rose slightly by less than 0.1% to 99.8 points at 16:07 GMT, reaching a high of 100.1 and a low of 99.5.

As for copper trading, September futures contracts dropped sharply by 21.8% to $4.36 per pound at 16:06 GMT in US trading.