Copper Futures Jump As Trump Orders Tariff Investigation

Copper futures surged on Wednesday after President Donald Trump directed the U.S. Commerce Department to investigate the potential imposition of tariffs on all forms of copper imports. This move is part of a broader strategy to protect American producers and reshape global supply chains through sector-specific tariffs. The copper market has already been rocked this year by disruptions, with traders speculating that new tariffs could create a price gap between U.S. and global markets.

Copper futures on the Comex in New York jumped as much as 4.9%, while shares of U.S.-based copper miners saw significant gains. Notably, Freeport-McMoRan Inc. surged more than 6% in after-hours trading, compared to Tuesday’s close.

The investigation into copper imports will be conducted under Section 232 of the Trade Expansion Act, which grants the president broad authority to impose trade restrictions on national security grounds. In a social media post, Trump declared that the “Great American Copper Industry has been decimated by global actors attacking our domestic production.”

This investigation follows Trump’s earlier announcement to impose 25% tariffs on steel and aluminum imports starting March 12, expanding the use of Section 232 measures that began during his first term. Under the copper inquiry, the Commerce Department has up to 270 days to complete its investigation and provide a report to the president.

As of 12:18 p.m. Shanghai time, Comex copper futures traded at $4.718 per pound, marking a 4.1% increase, while futures on the London Metal Exchange rose by 0.8%.

In related news, Chile’s state-owned copper miner, Codelco, announced it was resuming operations after the country emerged from its largest power blackout in 15 years. Codelco had been forced to halt production at its mines earlier due to the widespread electricity outage.