U.S. President Donald Trump announced plans on Tuesday to impose a 50% tariff on copper imports, though no timeline was given for implementation. The proposal, made during a cabinet meeting, was confirmed by Commerce Secretary Howard Lutnick, but no executive orders were signed at the time.
The proposed copper tariff comes as part of a broader strategy to realign global trade, following Trump’s previous levies on steel, aluminum, and automobiles. The announcement caused copper prices to surge by 8.7% to $5.47 per pound and boosted shares in mining firm Freeport-McMoran by 4.6%.
Canada, which exported $9.3 billion worth of copper and copper-based products in 2023, over half of it to the U.S., could be significantly impacted. Despite ranking 12th in global copper production, Canada holds less than 1% of the world’s copper reserves.
Trump linked the proposed tariffs to national security concerns under Section 232 of the Trade Expansion Act of 1962. He also signaled upcoming tariffs on pharmaceutical imports, suggesting a one-year grace period for manufacturers, after which they may face tariffs as high as 200%.
These Section 232 measures are separate from the broader global tariff regime Trump delayed on Monday, postponing its start to August 1 to allow time for further trade negotiations. Canada was exempted from those global tariffs and is working toward a bilateral trade deal with the U.S. by July 21, according to the Prime Minister’s Office.
In response to ongoing trade pressures, Canadian Finance Minister François-Philippe Champagne urged provinces, territories, and municipalities to support domestic steel and aluminum industries through strategic procurement. Ottawa recently enacted new rules to prioritize sourcing materials from Canada and trusted trade partners.
“A coordinated approach across jurisdictions would send a strong signal of unity and reinforce Canada’s resolve to secure fair treatment for our businesses and workers,” Champagne wrote in a letter shared publicly.
TRADE WORLD | Import Tariffs of Up to 40% to Begin August 1, Says Trump
