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| copper cathodes |
White House Tariff Exemption Triggers Sharp Copper Price Decline
US copper futures dropped sharply after the White House exempted copper cathodes, ores, and scrap from upcoming 50% tariffs. The executive order targets semi-finished copper products and derivatives but spares raw copper materials. As a result, market expectations shifted, causing prices to fall over $1 per pound in aftermarket trading.
Tariff Details and Impact on Copper Product Categories
The 50% Section 232 tariffs apply to copper pipes, wires, rods, sheets, tubes, and copper-intensive derivatives such as fittings and cables. However, cathodes, anodes, mattes, ores, and scrap are excluded from import duties. President Trump clarified that products subject to existing 25% auto tariffs will not face cumulative charges. This nuanced policy aims to balance trade protection and raw material availability.
Domestic Scrap Restrictions and Industry Implications
The administration also authorized requiring that 25% of high-quality copper scrap mined or produced in the US be sold domestically. Furthermore, export licenses for high-grade copper scrap may be mandated to protect US copper manufacturers. This move seeks to "level the playing field" amid global trade tensions and secure domestic supply chains.
ScrapInsight Commentary
The tariff exemption on copper cathodes temporarily eases price pressures but signals tightening controls on semi-finished products and scrap exports. Scrap traders and recyclers should monitor licensing regulations closely. This policy will reshape domestic copper flows, influencing pricing and supply security in the US market.
