Copper Prices Plunge After White House Exempts Refined Metal From 50% Tariffs

Copper futures ( HG=F ) dropped by as much as 19% on Wednesday following a highly anticipated directive from the Trump administration to levy 50% tariffs on industrial metals, which included an exception for refined copper, utilized across various sectors.

Read more: How Trump's trade taxes affect the economy and personal finances

Copper prices experienced their biggest single-day drop ever following the announcement, falling to approximately $4.55 per pound.

On Wednesday, the presidential residence announced Beginning August 1, it will apply 50% taxes on "intermediate" copper items.

Nevertheless, "copper raw materials (including copper ores, concentrates, mattes, cathodes, and anodes) and copper waste" are exempt from the duties. Cathodes consist of high-purity copper plates utilized in various applications such as electrical wiring, automobiles, building structures, and equipment.

Read more: Recent developments regarding Trump's trade taxes New information about Trump's tariff policies Updates on Trump's imposition of import duties Latest reports on Trump's tax measures for foreign goods Current status of Trump's tariff initiatives

Earlier this month, Copper prices jumped after import levels increased sharply. to capture levels before the anticipated tariffs. JPMorgan analysts projected over the last half-year, the united states has brought in almost a full year's supply of copper from abroad.

"The actual cause behind today's drop is that the rise in copper prices was fueled by fear, driven by expectations that refined metals would face similar tariffs," Warwick Smith, CEO of American Pacific Mining Corp ( USGDF ) said to Yahoo Finance on Wednesday.

A surge in imports came after an executive order issued in February classified copper as essential for national security, leading the Department of Commerce to examine if these imports pose a risk to local supply chains.

Prior to Wednesday's statement, experts expected that certain nations might arrange agreements to exclude their copper shipments.

According to industry professionals, the United States presently relies on imports for approximately half of its copper requirements, which are utilized in various sectors such as construction, automotive manufacturing, and data center operations.

Inés Ferré is a top-tier business journalist with Yahoo Finance. Connect with her on X at @ines_ferre .

Follow this link for a detailed examination of recent stock market updates and occurrences affecting share values

Get the most recent finance and corporate updates from Yahoo Finance

Berbagi :