In a surprise announcement on July 8, 2025, President Donald Trump – who reclaimed the White House last fall with 312 electoral votes to Kamala Harris’s 226, marking a historic non-consecutive second term – presented sweeping trade measures targeting copper. The administration will impose a 50% tariff on copper imports, with implementation expected by late July or August 1.

Trump cast the tariff as a national security priority, emphasizing copper’s essential role in electric vehicles, military systems, power grid infrastructure, and semiconductors. The announcement triggered a dramatic market response: copper futures surged 10–17% intraday on Comex, driving prices to new record highs, while shares of U.S. producers like Freeport‑McMoRan jumped on expectations of reduced foreign competition.

Yet, the ramifications extend far beyond miners. The U.S. imports about half its copper – primarily from Canada, Chile, and Mexico – raising serious questions about adherence to USMCA and other trade agreements. Manufacturers in sectors like EVs, electronics, and construction now face escalating input costs, igniting concerns over inflation and higher consumer prices. Industry groups and business associations are expected to lobby aggressively for exemptions or relief.

For companies with copper exposure, the announcement underscores the strategic importance of hedging. Firms that locked in forward copper prices prior to the tariff news have protected themselves from immediate cost shocks, while unhedged players now face thinner margins, pricing uncertainty, and volatility risk. As geopolitical trade risks mount, more procurement and finance teams are expected to turn to commodity hedging strategies—such as futures contracts, options, or structured supply agreements – to manage their exposure, stabilize budgets, and preserve competitiveness.

Globally, trade partners are mobilizing. Japan and South Korea have reportedly initiated diplomatic efforts to soften the tariff's impact, while Chile and Mexico consider retaliation or World Trade Organization challenges. These developments echo earlier disputes over steel, aluminum, and autos.

Politically, the move aligns with Trump’s hardline “America First” agenda early in his second term – a trade posture combining protectionism with geopolitical leverage. Although domestic mining companies stand to gain an immediate boost, the long-term economic cost could weigh heavily on manufacturers and consumers.

In the short term, companies with copper exposure need to manage their risks proactively. With Pillar, you can have a hedging program up and running in minutes. We work with scrap metal recyclers and metals trading companies who have been dealing with the heightened volatility this year and have achieved tremendous results. Book some time with us - we’d love to secure your business!