Trump Announces New 50% Tariff on Copper

President Donald Trump announced on Wednesday night that the United States will impose a 50 percent tariff on copper, effective August 1.

Trump wrote on Truth Social that he came to the decision after a “robust NATIONAL SECURITY ASSESSMENT.”

The Context

The president made a number of tariff-related announcements this week, rekindling his earlier threats against nations that are both U.S. allies and adversaries, accusing them of treating America unfairly.

He said on Wednesday that the U.S. will impose a 50 percent tariff rate on Brazilian imports. Trump cited a U.S. trade deficit as part of the reason, even though the U.S. had a $7.4 billion goods trade surplus with Brazil as of last year.

He also mentioned former Brazilian President Jair Bolsonaro in his tariff announcement, suggesting that his decision to impose the levies was based in part on his personal relationship with Bolsonaro.

Trump also sent letters to the leaders of at least 22 countries this week, threatening to slap a 50 percent tariff on their exports unless they negotiate more favorable trade deals with the U.S.

What To Know

“Copper is necessary for Semiconductors, Aircraft, Ships, Ammunition, Data Centers, Lithium-ion Batteries, Radar Systems, Missile Defense Systems, and even, Hypersonic Weapons, of which we are building many,” the president wrote when announcing his latest tariff.

He added: “Copper is the second most used material by the Department of Defense! Why did our foolish (and SLEEPY!) ‘Leaders’ decimate this important Industry? This 50% TARIFF will reverse the Biden Administration’s thoughtless behavior, and stupidity. America will, once again, build a DOMINANT Copper Industry. THIS IS, AFTER ALL, OUR GOLDEN AGE!”

Trump’s announcement on Wednesday came after he said at a televised Cabinet meeting on Tuesday that a new tariff on copper was on the horizon, though the timeline was unclear.

“Today, we’re doing copper,” he said at the meeting, adding that he believed the rate would be 50 percent.

Copper is the third most-consumed metal, after iron and aluminum. The U.S. imported $17 billion worth of copper last year, according to the Department of Commerce. Trump announced a Section 232 investigation into copper in February, invoking a law that allows the president to impose higher tariffs on national security grounds.

What People Are Saying

Ole Hansen, head of commodity strategy at Saxo Bank, told CNN: “A 50 percent increase will be a massive tax on consumers of copper. Watch what Trump does, not what he says. Perhaps we may see a staggered approach once the administration realizes the impact on consumers of such a big move.”

Commerce Secretary Howard Lutnick told CNBC’s “Power Lunch” on Tuesday: “The idea is to bring copper home, bring copper production home.”