Copper prices hit records amid Trump’s 50% tariff

ISTANBUL

US President Donald Trump’s announcement about 50% tariffs on copper imports led prices to new records, climbing to $5.81 per pound on global markets.

The Trump government started sending letters to countries which are supposedly not able to reach an agreement with Washington, namely Japan and South Korea, which will face 25% tariffs starting Aug. 1, in addition to sectoral tariffs -- goods transited through those countries will face higher tariffs and the 25% rate could rise if they retaliate or depending on their relations with the US.

White House spokeswoman Karoline Leavitt said 12 more countries would receive letters in the coming days while the tariff pause will be extended.

Malaysia, Kazakhstan and Tunisia will be hit with 25%; South Africa and Bosnia with 30%; Indonesia with 32%; Bangladesh and Serbia with 35%; Cambodia and Thailand with 36%; and Laos and Myanmar will be hit with 40% tariffs, according to the letters.

Following the developments, Trump said he will impose 50% tariffs on copper, pushing prices up 10% versus the end of June and 40% compared to the end of last year.

Heightening global supply concerns contributed to the rise, as well as China’s demand.

Copper miner Teck Resources reported production disruptions at two operations in Chile, while falling stocks pushed prices up on the London Metal Exchange.

The Kamo-Kakula copper mine in the Democratic Republic of Congo suffered seismic activity, flooding the underground section of the mine.

Zafer Ergezen, a futures and commodities expert, told Anadolu that the tariff announcements will significantly increase the cost of copper imports from the US’ main suppliers, such as Chile, Peru and Canada, while a decline in supply will come to the fore.

“US copper producers and miners will gain a competitive edge and copper costs in the US may also suppress some of the demand,” he said, noting that Trump made this move to reduce imports.

Ergezen said that China, on the other hand, is one of the world’s largest importers, and with rising costs in the US, copper from Chile, Peru and Canada that is imported to the US could be redirected to China.

“It’s somewhat difficult for these tariffs to stay long term because the measures taken here will naturally benefit China,” he added.