• Trump announces a 50% tariff on certain copper imports, excluding refined copper.
• U.S. copper prices plummeted by approximately 20% following the announcement.
• The tariffs will primarily affect semi-finished copper products and cables.
• Exemptions include essential materials like ores and refined copper that the U.S. relies on.
• Traders had anticipated broader restrictions leading to heightened price speculation.

On July 30, President Donald Trump signed an executive order imposing a 50% tariff on certain copper imports, citing national security concerns. The tariffs will specifically apply to semi-finished copper products, such as pipes and wires, while crucial materials like refined copper and ores will be exempt, effective August 1. Trump asserted that "copper is being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States," according to Reuters.

This announcement spurred immediate market reactions, with U.S. copper prices dropping by nearly 20% to $4.44 per pound on the Comex exchange, reflecting a significant reversal from previous peaks attributed to speculation over the tariffs. The plummet was driven by a realization that the announced tariffs were much narrower in scope than traders had initially anticipated, which had previously fueled a price surge to nearly $6, according to South China Morning Post.

The copper import tariffs were part of a broader strategy aimed at bolstering domestic production and addressing the U.S.' dependency on foreign copper supplies, mainly from countries like Chile and Peru, two of the world's largest copper producers. Trump emphasized the need for these tariffs during a time when the U.S. copper production has significantly declined, citing concerns over national economic security as the rationale, according to Reuters and Channel News Asia.

In conjunction with the copper tariffs, Trump also announced a 50% tariff on most Brazilian goods, although several sectors, including aircraft and energy, were excluded. This was met with relief from Brazilian officials who anticipated worse outcomes, as reports indicated a preference for "a more benign outcome than it could have been" according to Brazilian Treasury Secretary Rogerio Ceron, as highlighted by Reuters and Channel News Asia.

The final tariff announcements included the suspension of a "de minimis" exemption for small-value shipments, which means items valued under $800 will now incur regular duties starting August 29. This measure aims to counteract the influx of low-cost goods into the U.S. market, in alignment with Trump’s ongoing trade policy objectives, according to Reuters and Channel News Asia.