Copper prices in the United States have surged to a record high following Donald Trump’s announcement of a 50% tariff on the industrial metal. This move marks the latest escalation in Washington’s trade tensions with global partners and has raised fresh concerns in international markets.
Heavy Tariffs on Copper and Pharmaceuticals
US President Donald Trump, speaking ahead of a cabinet meeting on Tuesday, confirmed plans to impose a 50% tariff on copper imports. He also warned that pharmaceutical imports could face tariffs as high as 200% within the next 12 to 18 months. These remarks came just a day after Trump sent letters to more than a dozen countries, setting new tariff rates of up to 40%, effective from August 1.
Global Market Impact and Europe’s Response
Following the announcement, US copper futures jumped more than 10% to $5.682 per pound, reaching an all-time high. Conversely, copper prices on the London Metal Exchange dropped by as much as 2.4% amid concerns that reduced US demand could weigh on global markets. Meanwhile, European Union officials expressed cautious optimism about reaching an agreement with the US in the coming days to avoid a deeper trade conflict.
Conclusion
The new tariffs on copper and other critical goods by the US government are expected to drive up domestic costs while potentially disrupting global trade flows. Analysts warn that such measures could fuel inflation within the US economy while exerting downward pressure on international commodity prices.
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