U.S. President Donald Trump has signed a proclamation imposing a 50% universal tariff on all imports of semi-finished copper and copper-intensive derivative products, effective August 1. The move aims to protect and strengthen the domestic copper industry, which is considered vital to national and economic security.

According to a White House fact sheet, the tariff measure will be accompanied by a product “inclusion” process, allowing additional copper derivatives to be added. Trump has also empowered the Secretary of Commerce to take further steps under the Defence Production Act to support copper production in the U.S.

“By taking these actions, President Trump is levelling the playing field for U.S. copper businesses,” the White House stated, emphasizing copper’s strategic role in manufacturing defence systems such as aircraft, submarines, ground vehicles, missiles, and ammunition.

Following the announcement, U.S. copper futures on Comex dropped 20%, Bloomberg reported. Before the news, U.S. copper prices were trading at a premium — around 28% higher than global prices on the London Metal Exchange — as traders rushed to ship copper into the U.S. ahead of the tariff deadline.

The move is seen as the latest in a series of unpredictable actions by Trump that have disrupted global commodity markets. Earlier this year, his hint at potential copper tariffs led to a surge in U.S. prices and created a window of significant profit for major metals traders.

Analysts warn the new tariff could reshape global trade flows in the copper industry and increase costs for downstream manufacturers relying on imported semi-finished copper goods.