Copper just hit a record price in the U.S., surging to levels not seen since the massive spikes of the 1980s. The dramatic jump comes on the heels of President Donald Trump’s announcement that he plans to slap new tariffs on the vital metal — a move that could send shockwaves through global supply chains.
The U.S. relies heavily on copper imports, bringing in just over half of its total refined copper from abroad, according to the U.S. Geological Survey. Chile is the biggest supplier, accounting for 38% of imports, followed by Canada and Mexico. Domestic production has struggled to keep pace: U.S. copper output declined by approximately 3% in 2024, and many domestic mines continue to face production setbacks.
Interestingly, Chile’s government says it hasn’t been officially notified about the potential tariffs yet. Maximo Pacheco, chairman of Chile’s giant state-run mining company Codelco, told Reuters he’s still waiting for clarity on what exactly Trump’s tariffs would cover, since the president only mentioned “copper” in broad terms.
So why the sudden push for copper tariffs? The White House argues that America’s dependence on foreign copper poses a national security risk, noting that while the U.S. has substantial copper reserves, its smelting and refining infrastructure lags significantly behind. Trump’s probe into copper trade practices wrapped up earlier this year, though few details have been released publicly.
Copper isn’t the only target: Trump has also floated the idea of massive new tariffs on pharmaceuticals — up to 200% — in a bid to bring more drug production back to U.S. soil. As the tariff threat looms, global markets are bracing for higher costs and potential supply chain turmoil.
