Trump plans 50% tariff on copper; Freeport shares jump

US President Donald Trump said Tuesday he plans to impose a 50% tariff on copper as part of a sweeping set of sector-specific trade measures targeting metals, semiconductors, and pharmaceuticals. Copper futures in New York surged as much as 17% following the remarks, marking the largest intraday gain since at least 1988. Shares of major copper producers rallied on the news, with Freeport-McMoRan Inc (NYSE:FCX, ETR:FPMB)[1] up 3.8% and Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF)[2]'s US-listed stock rising 2.2%.

Freeport-McMoRan is by far the dominant domestic copper producer, with its Arizona operations accounting for the majority of the country's output. In 2024, total US copper production stood at 1.1 million metric tons, with Freeport responsible for the vast majority of that figure. Speaking during a Cabinet meeting, Trump also said pharmaceutical companies could have up to 18 months to shift production to the US before facing import tariffs of up to 200%. "We'll give them a certain period of time to get their act together," he said.

The proposed levies come as Trump pursues investigations under Section 232 of the Trade Expansion Act, citing national security concerns tied to foreign imports.

A separate round of country-specific tariffs is expected to take effect in early August.

References

1. ^ Freeport-McMoRan Inc (NYSE:FCX, ETR:FPMB) (www.proactiveinvestors.com)
2. ^ Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) (www.proactiveinvestors.com)