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Investing.com -- The U.S. copper market experienced a historic 22% price drop after President Donald Trump announced a surprise exemption for refined copper from his new 50% import tariffs.
The decision, made less than 48 hours before the tariffs were set to begin, caused the biggest shock to the global copper market in a year already marked by policy surprises and price volatility.
Copper futures on Comex in New York fell by more than 22% - the largest decline ever recorded - as traders quickly reassessed the value of copper in the U.S. compared to global markets. The previously substantial premium for New York futures over London prices completely disappeared, with Comex front-month futures swinging to a discount against the London Metal Exchange benchmark.
The 50% tariff will still apply to semi-finished copper products such as pipes, wires, rods, sheets, tubes, and copper-intensive goods including pipe fittings, cables, connectors, and electrical components. However, less-processed goods - including ore, concentrates, mattes, cathodes, and anodes - are exempt.
The Department of Commerce has instead recommended delayed tariffs on refined copper, suggesting a 15% rate starting in 2027, rising to 30% in 2028. Trump has directed the department to provide an update on U.S. copper markets by the end of June 2026.
The exemption decision comes after a massive influx of copper into the United States, as traders rushed to import the metal before the anticipated tariffs. When Trump first indicated the likelihood of tariffs earlier this year, U.S. prices soared relative to global markets, creating what industry veterans described as one of the biggest trading opportunities of their careers.
As of Thursday, copper was trading 0.6% lower on the LME at $9,642 a ton, while Comex copper was 22% lower at $4.37 a pound.
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