Copper Spikes To Record High After Trump’s 50 Percent Tariff Announcement

By Mish Shedlock of MishTalk

Wednesday, July 9, 2025 6:45 AM EDT

It’s 200 percent on pharmaceuticals with a grace period.

Treasury Secretary Scott Bessent talked Trump into another delay, but Trump plows ahead on copper.

The Wall Street Journal reports Trump Delayed Reciprocal Tariffs After Bessent Wanted More Time on Deals

President Trump decided to delay the implementation of his so-called reciprocal tariffs to Aug. 1 after advisers including Treasury Secretary Scott Bessent told him he could get trade deals with more time, according to people familiar with the matter.

Trump had mused publicly about moving away from notching agreements to avert tariffs. His inclination to let the tariffs snap into effect shifted after he heard from Bessent that some deals were close but needed more time. Bessent was a key aide who successfully convinced Trump to place the initial 90-day pause on his April “Liberation Day” tariffs that rattled global markets.

Commerce Secretary Howard Lutnick later said on CNBC that 15 to 20 new tariff letters to world leaders can be expected to be posted online in the next two days.

Trump, long a vocal advocate of the use of tariffs, said he was eager to place tariffs on a wave of countries, despite his new executive order. “TARIFFS WILL START BEING PAID ON AUGUST 1, 2025. There has been no change to this date, and there will be no change,” Trump wrote on Truth Social on Tuesday. During a cabinet meeting Tuesday, he asserted that his letters to other nations constituted a pact on bilateral commerce: “A letter means a deal,” he said, while noting that his team continues to negotiate with other nations.

Trump on Tuesday also previewed other tariffs imposed under a separate legal authority, saying he would impose 50% tariffs on copper and up to 200% tariffs on pharmaceuticals, citing national-security concerns. Companies would be given up to a year and a half to relocate pharmaceutical supply chains before levies would take effect.

Copper Imports Mostly from Americas

Reuters addresses the question Where Does the US Get its Copper?

U.S. President Donald Trump on Tuesday said he planned to announce a 50% tariff on copper imports later in the day, surprising a global industry whose output is critical to electric vehicles, military hardware, semiconductors and a wide range of consumer goods.

The United States produces domestically just over half the refined copper it consumes each year. More than two-thirds of that is mined in Arizona, where the development of a massive new mine has been stalled for more than a decade. The remaining refined copper, just shy of 1 million metric tons annually, is imported.

Latin America and Congo Copper

How Many People Are Employed in US Copper Mining?

In the U.S., approximately 12,000 people are directly employed in primary copper mining. This number excludes those working in supporting industries like equipment manufacturing, maintenance, and transportation, which are estimated to be 2-3 times the number of direct mining jobs. The broader copper, nickel, lead, and zinc mining industry in the US employs around 13,693 people.

The above clip is from AI.

How Many Jobs Will Trump Create?

Assuming the US produces all the copper it needs, the answer is hugely negative.

Perhaps mining industry employment doubles, if and when US mines get into production.

But that is dwarfed by users of copper, all paying a higher price.

Building Construction:This sector accounts for the largest share of copper consumption in the US, with around 45% of the total, according to Statista.
Electrical and Electronic Products: This sector uses around 22% of the copper consumed in the US, according to Statista.
Transportation: Copper is also used in transportation equipment, although the exact percentage varies year to year.
Other uses:Copper is also used in consumer and general products, as well as industrial machinery and equipment.

Seriously Idiotic

This copper tariff is seriously idiotic. And it follows on the heels of idiotic tariffs on steel.

Powell is correct to be worried about a surge in inflation.