New US copper tariff rattles markets ahead of August deadline
Copper fell over 6% after Chile said it would seek exemption from new US import tariffs.
Comex copper prices dropped over 6% after Chile’s finance minister said he would ask the US for an exemption from new import duties. The steep decline came just days before a 50% US tariff on copper is set to take effect on 1 August.
Chile supplies nearly half of America’s imported copper, and the move rattled traders uncertain about which copper products the tariff will cover.
Chile’s Mario Marcel said he hopes for a waiver similar to those given to raw materials like UK steel. He ruled out retaliation, warning it would raise domestic prices. Officials in Santiago warn the tariff may raise costs for US manufacturers reliant on imported copper.
Copper shipments surged to US ports as firms rushed to beat the deadline. On Monday, Comex copper ended the day down 2.9% at $5.6155 per pound, while LME prices rose slightly to $9,793 a tonne.
Despite the dip, Comex copper remained about 27% more expensive than the global benchmark.
In a related shift, India overtook China as the leading supplier of smartphones to the US. US phone shipments rose just 1% in Q2 2025, as firms front-loaded inventory ahead of potential new duties.
Apple, now producing most iPhones for the US market in India, faced an 11% drop in US shipments, while Samsung’s rose 38%.
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