Copper prices declined during Wednesday’s trading after Tuesday’s sharp rally, which was driven by new tariffs announced by U.S. President Donald Trump on the red industrial metal.
On Tuesday, President Trump announced a 50% tariff on copper imports and revealed that long-awaited duties on semiconductors and pharmaceuticals would be announced soon, in a move that expands the scope of his ongoing trade war that has shaken global markets.
The announcement came just one day after Trump imposed steep tariffs on 14 trade partners, including major U.S. suppliers like South Korea and Japan. He also renewed his threat to impose 10% tariffs on imports from Brazil, India, and other BRICS nations.
While noting that trade talks were progressing well with the European Union and China, Trump added that he was just days away from sending a tariff notice to the EU.
The remarks, delivered during a Cabinet meeting at the White House, sparked further concern in a global economy already struggling with the fallout from tariffs either imposed or threatened on exports to the world’s largest consumer market.
Following Trump’s announcement, U.S. copper futures jumped more than 10% amid expectations that the tariffs will join existing duties on steel, aluminum, and automobiles. Copper is considered a vital input for electric vehicles, military equipment, power grids, and various consumer goods. The effective date of the new tariffs has yet to be announced.
Shares of U.S. pharmaceutical companies also fell after Trump threatened to impose tariffs of up to 200% on imported drugs, though he noted implementation might be delayed for nearly a year.
In response, other countries signaled they would try to mitigate the impact of these measures, especially after Trump postponed the Wednesday tariff deadline to August 1.
The Trump administration had previously promised “deals within 90 days” after unveiling in April a tariff list tailored to each country. So far, only two deals have been reached — one with the United Kingdom and one with Vietnam. Trump said an agreement with India is close.
“It’s time for the United States to start collecting money from countries that have been robbing us,” Trump said. “They’ve been laughing behind our backs, thinking we were stupid.”
In a post on Truth Social Tuesday evening, Trump said “no fewer than seven tariff notifications” would be issued Wednesday morning, with more to follow in the afternoon. He gave no further details.
Many trade partners around the world have complained that even basic framework negotiations are difficult due to the unpredictable manner in which new tariffs are announced, making internal compromise more difficult.
Highest tariff level since 1934
According to Yale University’s Budget Lab, Trump’s new tariffs on imports from 14 countries raised the effective tariff rate on American consumers to 17.6%, up from 15.8% previously, marking the highest level in 90 years.
The Trump administration promotes the tariffs as a key source of revenue. Treasury Secretary Scott Bessent said the U.S. has collected about $100 billion in tariffs so far, with projections reaching $300 billion by year-end, compared to an average of $80 billion annually in recent years.
U.S. markets edged lower on Tuesday, with the S&P 500 closing slightly down after a steep selloff on Monday following the tariff announcement.
Trump said he would “likely” notify the European Union within two days of the tariff rates expected on its exports to the U.S., noting that the 27-nation bloc has been “very good” to his administration in ongoing trade talks.
According to European sources, the EU aims to reach a deal before August 1 that includes concessions in key export sectors such as aircraft, medical equipment, and spirits. Brussels is also weighing a framework that would protect European carmakers with major manufacturing presence inside the U.S.
However, German Finance Minister Lars Klingbeil warned that the EU is prepared to retaliate if necessary. “If we cannot reach a fair trade deal with the United States,” he told parliament, “then the European Union is ready to take countermeasures.”
Japan, which may face a 25% tariff, is seeking exemptions to protect its massive automotive industry, while refusing to make concessions on agriculture — a sector with strong domestic political influence. Chief trade negotiator Ryusei Akazawa said a quick deal is unlikely.
South Korea, which also faces potential 25% tariffs, said it would intensify trade talks in the coming weeks “to reach a mutually beneficial outcome.”
As for relations with China, Washington and Beijing agreed on a general trade framework in June, though many details remain unclear. Investors are watching closely to see whether the deal collapses before the U.S. deadline of August 12 or results in a lasting truce.
“We’ve had a very good relationship with China lately,” Trump said. “We’re getting along extremely well. They’ve been very fair in our trade agreement, frankly.”
He added that he is in regular contact with Chinese President Xi Jinping.
New tariff list targeting multiple countries
Trump announced that the United States would impose:
25% tariffs on goods from Tunisia, Malaysia, Kazakhstan
30% tariffs on South Africa and Bosnia and Herzegovina
32% tariffs on Indonesia
35% tariffs on Serbia and Bangladesh
36% tariffs on Cambodia and Thailand
40% tariffs on Laos and Myanmar
Meanwhile, the U.S. Dollar Index rose slightly by less than 0.1% to 97.5 points at 16:00 GMT, recording a high of 97.7 and a low of 97.4.
In U.S. trading, copper futures for September delivery fell 3% to $5.51 per pound at 15:55 GMT.
