African Critical Minerals: Trump Confirms 50% Tariff on Copper Imports, U.S. Copper Prices Surge to Record High

¬ Trump announced a 50% tariff on all imported copper in the name of national security

¬ Due to traders' reaction to the imminent restrictions, copper futures prices broke through $12,330 per ton

¬ African exporters face indirect risks from global price fluctuations and trade re-routings

On July 8, 2025, U.S. President Donald Trump announced a 50% tariff on all copper imported into the United States. According to multiple sources, this news immediately triggered a surge in copper prices, with copper futures reaching record highs above $12,330 per ton.

This decision was made during a cabinet meeting, in line with Section 232 of the Trade Expansion Act, which allows the president to implement trade measures in the name of national security. Although the official start date has not been determined, the Obama administration stated that the measure may come into effect in early August.

The tariff will apply to all imported copper, regardless of its origin. It adds to existing trade barriers for products such as steel, aluminum, and automobiles. The Trump administration said its goal is to reduce reliance on foreign sources of critical metals.

Copper is essential in various industries, including electronics, electric vehicles, renewable energy, and digital infrastructure. According to data from the U.S. Department of Commerce cited by the media, the U.S. imported $17 billion worth of copper in 2024, with $6 billion coming from Chile.

The Guardian quoted Jefferies analyst Christopher Raffimena, who said that compared to other markets, the new tariff could cause sustained price premiums in the U.S., as the U.S. "absolutely" lacks the capacity to meet domestic copper demand through its own mines, smelters, or refineries.

This move comes at a time when the copper market is already in turmoil. In March, the Economic and Financial Agency reported that merely mentioning the tariff caused a rush into the U.S. market, creating an unprecedented price gap with the London Metal Exchange. According to data from Mercuria Energy Group, during this period, about 500,000 tons of copper were rerouted to the U.S., seven times the monthly average import volume.

For major copper-producing countries in Africa, such as the Democratic Republic of the Congo, Zambia, and Botswana, the impact of the U.S. tariff may be indirect but still significant. Although these countries have limited copper exports to the U.S., they are still facing the effects of global price fluctuations and changes in trade flows.

In March, the Economic and Financial Agency pointed out that most African producers lack logistical or contractual flexibility to quickly adjust their sales strategies to adapt to sudden opportunities. Limited storage infrastructure, strict long-term contracts, and a lack of real-time market intelligence make them vulnerable in a rapidly changing environment.

A study published by the Firdaus Foundation in June highlighted that price volatility remains the greatest economic risk faced by African countries amid escalating trade tensions. Although the continent has low direct exposure to the U.S. market, its strong reliance on China - the world's largest buyer of industrial metals - creates serious vulnerabilities. A slowdown in Chinese demand due to prolonged trade wars could severely drag down global copper prices.

Currently, the exact impact of the U.S. measure on Africa remains uncertain. It will depend on the actual implementation of the tariff, the response of Asian markets, and how African countries adjust their logistics and contracts to take advantage of the new dynamics, among other factors.

Sources: ecofinagency

Original: https://www.toutiao.com/article/1837307943588928/

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