Washington: US President Donald Trump on Wednesday imposed a pared-back import tariff on copper that excluded the metal in its raw form from a 50-percent levy on semi-finished products. The price of copper, which had soared after Trump flagged the tariffs earlier this month, plunged by almost 20 percent when it emerged the duty would not apply to refined or raw copper metal.
According to Bangladesh Sangbad Sangstha, the metal is used extensively in industry and defense manufacturing, and the White House stated that the United States had become overly reliant on copper imports, having once been a world leader in production. It is also critical for the artificial intelligence and green energy revolutions. The tariffs are set to take effect Friday, the White House confirmed.
Chile, the world's top copper producer and the United States' main supplier, expressed relief at the exclusion for raw metal. Maximo Pacheco, president of Chilean state mining firm Codelco, told reporters, "An initial reading allows us to conclude that tariffs will not be applied to copper cathodes" - high-purity sheets of the raw metal - "allowing us to continue as a country supplying that market." Chile is responsible for nearly a quarter of the global copper supply, accounting for 10 to 15 percent of its GDP.
The United States imports about 45 percent of the copper needed for industrial use, according to the US Geological Survey, a government agency. Of that, it gets 51 percent from Chile. The White House announcement clarified that tariffs on cars and copper products will not be cumulative. If a product is subject to both, it is the auto tariffs that will apply.
The decision not to stack tariffs has reassured investors who rushed to buy copper early this month when Trump suggested a universal 50 percent tariff on the metal. Copper prices hit a record at more than $5.80 per pound. The White House justified the tariffs on national security grounds, citing the Defense Production Act to ensure part of US production of copper cannot be exported, thereby supporting US industry.