Copper, an essential material in products like electronics, machinery, and vehicles, could see price increases due to potential tariffs on its imports.

Last year, the United States imported copper worth $17 billion, with Chile being the leading source, providing $6 billion of that total, according to data from the US Commerce Department.

While investors and businesses have been expecting tariffs on copper, the exact details and coverage of these tariffs remain unclear.

The newly announced tariffs will target semi-finished copper products, including items like copper pipes and copper-related products such as cables. However, refined copper, which is vital for manufacturing, will not face these tariffs.

This exemption led to a 19 percent drop in copper prices in New York, as markets reacted positively to the news about refined copper.

“This announcement indicates the copper tariffs are much more limited in nature than the market originally understood,” Rob Haworth, senior investment strategist at US Bank Asset Management, said in an email.

Copper prices were on pace for the biggest single-day drop on record, according to FactSet.

Prices had surged to record highs this year as companies stockpiled copper ahead of Trump’s tariffs.

De minimis loophole closed

Finally, Trump suspended a tax perk for all countries known as the “de minimis exemption,” which allowed duty-free shipments of goods worth $US800 or less.

Trump had previously targeted the exemption in the US-China trade war, but the latest move closes the option of back-door shipments through other countries. That will particularly impact e-commerce giants such as Shein and Temu.

The executive order noted that Americans returning from travel abroad could still bring back up to $US200 in personal items or could receive gifts valued at $US100 or less duty-free.

Customs and Border Protection previously told CNN it processed “nearly 4 million duty-free de minimis shipments a day.”

Research indicates that a majority of those shipments come from China and Hong Kong. In total, over the last fiscal year, CBP said 1.36 billion packages came to the US under the de minimis exemption.

The Trump administration slashed the de minimis exemption on China in May, cutting the tariff on those cheap packages from 120 per cent to 54 per cent and slashing the rate from 145 per cent to 30 per cent for packages from commercial carriers.

As part of Trump’s “Big Beautiful Bill,” the de minimis rule was slated to be repealed for all countries in July 2027, and the bill even established a civil penalty up to $US10,000 for more than one violation of the rule.

That was expedited with Trump’s suspension, which will be effective August 29.