Donald Trump announces 50% tariff on copper imports

US President Donald Trump has announced the imposition of a 50% tariff on copper imports. The duty is higher than previously expected, Bloomberg reports. 

The US leader is seeking to boost mining at home. At the same time, local manufacturers oppose copper tariffs, given their heavy reliance on imports. 

Since Trump first mentioned copper duties in February, record volumes of the metal have been shipped to the United States. The higher-than-expected tariff could come into effect within weeks and would disrupt that trade. 

Following the US President’s recent comments, copper contracts on the COMEX soared to a 25% premium over prices on the London Metal Exchange (LME), according to the news agency. Analysts at Benchmark Mineral Intelligence believe the tariff increase will weigh on copper prices on the LME. They expect continued volatility until the duties are officially imposed, followed by a sharp drop.

At the same time, demand for the metal will rise further globally due to the transition to renewable energy, Bloomberg adds.