July 10, 2025 | FIXIO Markets
On July 8, 2025, former U.S. President Donald Trump announced plans to impose a 50% tariff on imported copper. The measure is based on Section 232 of the Trade Expansion Act, citing national security concerns, and is expected to be implemented between the end of July and August 1.
This tariff is rooted in concerns that rising dependence on foreign copper threatens the supply chain for critical sectors such as electric power infrastructure, defense equipment, and electric vehicles (EVs). Section 232 allows the U.S. government to impose tariffs or quotas on imports deemed a risk to national security. Similar actions have previously targeted iron and aluminum.
Trump issued a statement via his social media platform Truth Social, declaring that copper is a critical material for U.S. manufacturing and military industries. He warned that continued reliance on foreign sources could endanger national security. He also indicated that additional tariff measures on semiconductors and pharmaceuticals will be announced in the coming weeks, drawing attention from global investors and policymakers.
Following the announcement, copper futures on the New York COMEX jumped by over 13%, reaching a historic high. Analysts warn of potential supply shortages and expect continued price increases due to disruption in the supply chain.
Copper is an essential material used in electric vehicles, power grids, construction, IT hardware, and military electronics, and global demand is steadily rising. Restrictions on copper imports could destabilize global trade flows and create diplomatic tensions with major producers such as China, Chile, and Zambia.
In his statement, Trump mentioned the possibility of imposing tariffs of up to 200% on pharmaceuticals after a grace period of one to one and a half years. This has raised concerns that protectionist measures may extend to the semiconductor and pharmaceutical sectors, triggering volatility in healthcare and tech-related stocks.
Takayuki Honma, Chief Economist at Sumitomo Corporation Global Research, stated that “copper is used in a wide range of industries, including automotive, power equipment, aircraft, and smart grids. Rising prices in the U.S. will place significant pressure on the entire supply chain.”
He added, “For Japanese companies operating factories in the U.S., higher import costs for copper will directly impact production costs. However, the current state of the U.S. economy is not strong enough to absorb these increases, necessitating careful pricing strategies.”
In a press conference, Japan’s Deputy Chief Cabinet Secretary Mr. Tachibana said, “We are aware of reports concerning the U.S. government’s plans to implement tariffs. We will thoroughly examine the details and potential impacts on Japan and respond appropriately.” The Ministry of Foreign Affairs and the Ministry of Economy, Trade and Industry are reportedly analyzing the impact on Japan-U.S. trade and investment relations and may consider taking steps under WTO rules if necessary.
This tariff initiative is more than an economic policy; it is part of Trump’s broader national strategy aligned with his “America First” agenda. Targeting copper, a strategic resource, will likely have widespread implications for infrastructure, automotive, and defense industries. Depending on the outcome of the upcoming elections and policy shifts, further trade realignments may occur. Japanese firms and investors are entering a phase where they must reassess mid- to long-term business risks and cost structures, beyond temporary price fluctuations.
For the latest developments on this topic, including market trends, forex impacts, and geopolitical risks, visit our blog below.
Former President Trump announces a 50% tariff on copper imports under Section 232, citing national security. The article explains the impact on EVs, pharmaceuticals, Japanese companies, and global markets. Includes FIXIO blog link and Wikipedia references.
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