U.S. President Donald Trump says he will impose a 50% tariff on %Copper imports into America.
The president also suggested that steep sector-specific duties on other metals might be on the way.
At a cabinet meeting, President Trump said, “Today, we’re doing copper… I believe the tariff on copper; we’re going to make it 50%.”
He did not specify when that tariff would take effect or if there is room for negotiation.
Copper prices jumped to a record high after Trump’s comments, ending the trading day on July 8 up 13% for the metal’s best one-day gain since 1989.
Shares of American copper miner %FreeportMcMoRan (NYSE: $FCX) rose 5% on the day as investors expect domestic producers to benefit from the new import tariff.
Copper is the third-most used metal in the world behind iron and aluminum.
The U.S. imports nearly half of the copper it uses, most of which comes from Chile, according to data from the American government.
In late February of this year, President Trump ordered a probe into potential new tariffs on copper imports based on national security concerns.
However, until now, Trump has delayed implementing higher tariffs on copper.
The U.S. president has imposed tariffs of 25% on other metals, including steel and aluminum, sparking trade tensions with neighboring countries such as Canada and Mexico over the duties.
The stock of Freeport-McMoRan is up 22% this year and trading at $46.27 U.S. per share.
