Core Viewpoint - President Trump announced a 50% tariff on imported copper products, excluding refined copper, which led to a significant drop in copper prices in the U.S. market [1][3][5] Group 1: Tariff Announcement and Market Reaction - The U.S. will impose a 50% tariff on various imported copper products starting August 1, including semi-finished copper products like pipes, wires, and rods, but refined copper is exempt [5][6] - Following the announcement, New York copper prices fell approximately 20% within minutes, marking the largest single-day drop in history for Comex copper futures [3][4] - Prior to the announcement, U.S. copper prices were about 28% higher than the benchmark copper futures on the London Metal Exchange (LME) [3] Group 2: Impact on Companies - Freeport-McMoRan Inc. saw its stock price drop by about 10%, while Southern Copper's stock fell over 6%, indicating a negative market reaction to the tariff news [4] - In contrast, Codelco, the Chilean state-owned copper company, views the tariff as a positive development, benefiting from the exclusion of refined copper from the tariff list [4] Group 3: Broader Economic Implications - The tariffs are part of a broader strategy by the Trump administration to boost domestic industries and address trade imbalances, following previous tariffs on steel and aluminum [7][8] - The White House clarified that these copper tariffs will not be combined with additional tariffs on automobile imports, which could further complicate trade dynamics [8] - Analysts suggest that the exclusion of refined copper from tariffs may disrupt global copper trade flows, as the U.S. currently relies heavily on imports for its copper supply [10][12]