Copper Arbitrage Disappears After Trump's Tariff Surprise

Copper prices plunged nearly 20% on Wednesday after President Donald Trump surprised markets by excluding refined copper from a sweeping 50% import tariff, abruptly ending a months-long rally fueled by fears of broad trade restrictions.

The White House confirmed the new tariffs, effective August 1, will apply only to semi-finished copper products such as pipes, wires, rods, sheets, and tubes, as well as copper-intensive goods like pipe fittings, cables, and electrical components.

Yet, the proclamation was careful to distinguish between product types, as Input materials, including ores, concentrates, mattes, cathodes, and anodes, were explicitly excluded from the tariff list. The proclamation also introduced provisions under the Defense Production Act to boost domestic refining and smelting capacity.

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COMEX copper futures reached as low as $4.50 per pound, the largest single-day decline in ...