U.S. President Donald Trump has signed an executive order that imposes a universal 50% tariff on %Copper imports, sending the price of the metal plunging.
U.S. copper prices fell as much as 18% on news that the White House is imposing the steep new tariff rate. The drop in copper’s price is the largest one-day decline since 1989.
Stocks of copper miners %FreeportMcMoRan (NYSE: $FCX) and %SouthernCopper (NYSE: $SCCO) declined 10% and 6% respectively immediately after the 50% tariff was announced.
The new copper %Tariffs go into effect on Aug. 1, according to a written statement from the White House.
The Trump administration says that the new duties, which follow 50% tariffs imposed on steel and aluminum, are aimed at boosting domestic industries and addressing “trade imbalances.”
However, analysts say that the import duties could raise prices on all sorts of products, ranging from construction materials to electronics that use copper.
The Tax Foundation said in a recent report that President Trump’s tariffs could dampen overall U.S. growth and lead to an economic slowdown.
Copper is the third-most-consumed 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.
Copper is currently trading at $5.35 U.S. per pound, having dropped another 6% in premarket trading on July 31.
