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Copper prices dropped sharply by 20% on Wednesday afternoon following a White House announcement that excluded refined copper from the latest US import tariffs.
By Ryan Chigoche
The US administration clarified that the new 50% tariff will apply only to semi-processed copper products such as pipes, wires, rods, sheets, and tubes, as well as copper-intensive manufactured items, including pipe fittings, cables, connectors, and electrical components.
After this clarification, copper futures on the COMEX market fell nearly 20%, hitting $4.52 per pound by 4:15 p.m. ET, the lowest level since early May.
Before the announcement, US copper prices had been trading at a premium of up to 28% above London benchmark futures, driven by expectations that tariffs would cover all refined copper imports.
This development follows a series of market disruptions triggered by President Trump’s earlier moves.
When he first initiated an investigation into copper tariffs this year, US prices surged, sparking a rush to import copper ahead of potential tariffs.
Then, earlier this month, his declaration of a 50% tariff—double market expectations—pushed prices to record highs.
For Zimbabwe, where copper mining has been struggling to recover, the plunge in prices could impact revival efforts at the Mhangura Copper Mine, which historically produced over 20,000 tonnes annually before its closure in the early 2000s. The government has been courting investors to restart the mine as part of its broader strategy to revitalise the base metals sector and boost export earnings.
Market analysts now believe that excluding refined copper cathodes from tariffs will cause further shifts in global copper trade. Large stockpiles accumulated in the US over recent months may now be re-exported.
Michael Haigh, Head of FIC and Commodity Research at Société Générale, commented, “With cathodes excluded, the arbitrage opportunity ends, and the market should move back toward price parity.”
The tariff distinction between refined and semi-processed copper came after lobbying efforts by industry stakeholders who argued the US lacks the capacity to immediately replace all copper imports.
Additionally, the copper tariffs will not be combined with separate auto import levies imposed earlier this year, the White House noted.
