US Copper Prices Crash Most On Record After Trump Confirms 50% Tariff Excludes Refined Products

U.S. copper futures crashed over 19% within minutes around 2:00 p.m. ET, marking the largest intraday drop on record, after the White House announced a 50% tariff on all semi-finished copper imports starting August 1.

Largest daily decline on record!

Traders were stunned when copper cathodes, the most widely imported and traded form of refined copper, were exempted from the new duties, triggering a vicious unwinding of bullish bets. The initial expectation had been that the tariffs would apply to all refined imports. 

Pre-2:00 p.m. ET, U.S. copper prices were trading at record highs. 

President Trump invoked the Defense Production Act, which allows his administration to direct industries to boost production of copper critical to national security. This means 25% of high-quality copper scrap and forms of raw copper must be made in the U.S. and sold domestically in 2027. That percentage would rise to 40% by the end of the decade. This move should be enough to boost domestic refining capacity while supporting U.S. refiners. 

Trump wrote in the order that the Commerce Secretary concluded copper imports threaten U.S. national security, citing overreliance on foreign sources, weakened domestic capacity, and global overproduction.

The metal is critical to defense systems, infrastructure, and the broader industrial base, with no adequate substitutes.

“Today, a single foreign country dominates global copper smelting and refining, controlling over 50 percent of global smelting capacity and holding four of the top five largest refining facilities,” the order said, stopping short of naming China. 

Trump’s actions:

• Effective August 1, 2025, Trump imposed a 50% tariff on semi-finished copper products and intensive copper derivatives.

• Refined copper (cathodes) was excluded for now, but a phased tariff of 15% in 2027 and 30% in 2028 is under consideration.

• The tariff is in addition to any existing duties from other executive actions, such as those targeting drug trafficking or trade imbalances.

• The proclamation includes a mechanism to add further copper derivatives to the tariff list.

• Strict customs enforcement is ordered, including criminal penalties for underreporting copper content.

Trump’s order seeks to rebuild America’s copper industrial base, strengthen supply chain resilience, accelerate domestic production and investment, and reduce the alarming dependence on China for base metals and rare earths (think magnets). It’s a strategic move to prepare for the volatile 2030s, as the global order fractures into a dangerous bipolar world. Securing critical supply chains now is essential to safeguarding the nation’s future.