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This week, President Trump announced that the U.S. would begin imposing 50% tariffs on copper imports.
Trump announced on his Truth Social platform that starting August 1, 2025, the U.S. would impose the copper tariff “after receiving a robust national security assessment.”
“Copper is necessary for Semiconductors, Aircraft, Ships, Ammunition, Data Centers, Lithium-ion Batteries, Radar Systems, Missile Defense Systems, and even, Hypersonic Weapons, of which we are building many,” he wrote.
What the Copper Tariffs Mean
Ryan Young, a senior economist at the Competitive Enterprise Institute (CEI), a public policy think tank, says that while any industry that utilizes copper will likely face inflation, manufacturing industries, where the metal plays an instrumental role, will be hit the hardest.
“Anyone who uses electricity will be affected,” Young says. “Maintenance is going to become a little more difficult. We might see a few more brownouts and blackouts at the margin.”
Consumers may also see higher energy bills due to the rising cost of copper wiring, copper pipes and electrical transmission lines, Young says.
Other industries expected to be affected include the automotive and construction industries. Young says that while cars will mostly be made of steel by weight, they will still require copper wiring for built-in electronics to function.
What does it mean for the U.S. copper industry? According to Young, the tariffs will likely not yield lucrative profits for the copper industry, which is relatively small compared to other metals.
“The steel industry produces around $100 billion [in revenue] per year, whereas the copper industry is around $13 billion [in revenue] per year, and it’s also more import-intensive than steel,” he says. “Around half of American copper is imported, mostly from places like Chile or Canada. About one-third is recycled, and only about 12% or 13% is mined domestically.”
Chile, America’s largest supplier of copper, provides a significant portion of the country’s imported copper. In 2024, Chile supplied roughly 70% of American copper imports, accounting for 11% of its total copper exports.
While the goal of Trump’s tariff may be to ramp up domestic production for copper, Young warns that the United States does not currently possess the infrastructure to divest from foreign imports.
“Given the time it takes to identify the sites, build the mines and get the permits, that is a years-long process, and the President gave everyone three weeks’ notice,” he says.
Instead, the economist warns that the imposed tariffs could damage foreign trade relations.
According to the Office of the U.S Trade Representative, Canada, Chile, China, and Mexico are some of America’s largest trade partners, with China as the top supplier of goods to the United States, accounting for 16.5% of total goods imported in 2022.
Young says that a new tariff could harm a country’s goodwill towards the U.S., dampening their desire to trade with America, especially considering its contentious trade war with China.
How Does This Impact Me?
President Trump’s latest tariff announcement adds to a growing list of trade measures that are contributing to economic uncertainty. With copper tariffs potentially increasing energy bills, automobile prices and construction costs for consumers, now is a smart time to reassess your finances. Reviewing your savings strategy and ways to protect your investments can help you stay financially secure and equipped to handle rising prices.
When it comes to investing, automated investing programs offer a hands-off way to keep your money working for you. The best robo-advisors adjust your portfolio based on your goals, risk tolerance and time horizon. If you already use one, now might be a good time to reassess your risk level. And if you usually manage your investments on your own, switching to a robo-advisor could help you avoid missing time-sensitive moves that might otherwise shrink your portfolio.
If you want short-term safety and easy access to your money, consider a high-yield savings account. If you can afford to lock your money away for a while, a certificate of deposit (CD) can also provide a guaranteed return. Many of the best high-yield savings accounts and CDs currently offer rates above 4%, so aim for something in that range when comparing your options.
Read more: Safest Places To Put Your Money During Economic Uncertainty