The transfer of President Trump to impose a 50% rate on North -American copper imports is a life metal that is widely used in many products and industries. This could lead to higher prices, from appliances and electronics to cars and home repairs, said economists and industry experts.
Lord Trump announced The functions of copper at the end of Wednesday on its true social platform, saying that they will take effect on August 1.
“Copper is necessary for semiconductors, aircraft, vessels, ammunition, data centers, lithium ion batteries, radar systems, missile defense systems and even hypersonic weapons, which we are building many,” he wrote. “Copper is the second most used material for the Department of Defense! Why our fool (and asleep!)” The leaders “decorated this important industry? This 50% rate will reverse the behavior and stupidity of Biden’s administration. America will once again build a dominant copper industry.”
Price jump
Ryan Young, a senior economist in the Competitive Enterprise Institute, a non -supportive think tank, said that copper is a comprehensive component in electric wiring and plumbing, as well as using as a heat driver in radiators and appliances. It is concerned that a high copper rate triggers inflation.
Copper prices had already increased by 13% on Tuesday, reaching a maximum record after Mr. Trump fluttered as possible.
“It’s bad news everywhere,” Young said about the copper rate proposed by Mr. Trump. “If they increase the costs of companies, they transmit them to consumers, so we will see higher prices for home repairs and whatever they use copper.”
Young said copper rates could also make the country’s maintenance maintenance and boost the energy costs of households, Youung said. “I would adversely affect the electricity industry and anyone using electricity.”
Trump has said that the rates provide financial incentives to increase domestic production, including critical materials such as copper, and help creating manufacturing jobs.
“America cannot rely on foreign imports of copper needed for military hardware, infrastructure and everyday electronics,” said Kush Desai’s spokesman for CBS Moneywatch. “Trump administration is committed to remodeling the manufacture that is critical [to] Our national and economic safety with a two-pointed rate approach and a complete set of supply reforms such as deregulation and pro-marking tax cuts of the only bill.
Effects on ripples
The largest copper users – and therefore more exposed to the increase in rates – include a wide range of industries, which covers everything, from construction to semiconductors, electric vehicles and renewable energy components such as solar panels, according to the industry.
Daan de Jonge, the demand for copper and prices lead the analysts of Benchmark Mineral Intelligence, said in a research note that “a rise in the price of 50% will have inevitable effects on the cost of the new infrastructure, the cost of the cost of the cost of the fridge, the cars, the air conditioning”.
For consumers, this means that the cost of appliances such as refrigerators and air conditioners, as well as EVs, would probably increase if this 50% rate comes into force, according to analysts.
“Copper is an important element in the development of semiconductors and electric vehicles. And the tariff announcement caused prices to increase dramatically, so it can be said that it is quite great,” said Veronique de Rugy, a political economy professor and a principal researcher at the University of George Mason, at CBS Moneywatch. “The reason for President Trump chose copper is because it is such an important thing for many important things.”
Cut for key partners?
The United States is very based on Chile copper imports, followed by Canada. Net US copper imports met 53% of US copper demand last year, according to Morgan Stanley Research.
Experts point out that Mr. Trump is not sure to do the roles of copper, saying that his proposal could be more aimed at achieving exporters.
“These are two examples of countries that the United States could offer some kind of export restriction or relief as part of a broader agreement,” CBS Moneywatch told CBS Moneywatch, in reference to Canada and Chile. A renewed trade policy could also include carved out for foreign copper suppliers, added
Although the United States could increase domestic copper production, years would be needed to significantly increase production, Reiman said. “We are not ready. The mines should be built and it is usually a multiannual process.”
Sectoral tariff threats occur after Mr. Trump this week announced new rigid rates At 20 nations That they have not yet reached trade agreements with the United States and said it would take effect on August 1. He exhibited the new rates, published in letters almost identical to social truth, as a 90 -day pause on the so -called “reciprocal”. set to expire On Wednesday.
contributed to this report.