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White House Pauses Decision on Refined Copper Tariffs

The pause reflects affordability and political concerns that could keep copper prices elevated.

Overview

  • Reports on Thursday say the White House has not made a final decision after Commerce Secretary Howard Lutnick delivered a June update and recommendation on refined copper duties.
  • Administration officials had discussed a phased tariff plan that would start at 15% on refined copper in 2027 and rise to 30% in 2028, but no formal schedule has been announced.
  • Expectations of tariffs prompted traders and industrial buyers to front‑load imports earlier this year, driving U.S. warehouse stockpiles higher and pushing global copper prices to record levels.
  • Officials argue tariffs could improve the economics for U.S. mining, smelting, and refining projects while critics warn higher import costs would raise prices for builders, manufacturers, and data‑center projects; the U.S. currently operates only two smelters.
  • Markets and supply chains will likely stay volatile until the administration issues a clear ruling, with close attention on political timing before the November midterms and on whether inventories flow back to overseas markets.