The Domino Effect Of Copper Tariffs

What They Could Mean for the Economy

Copper tariffs are coming – and the market is bracing for impact.
Henry Jennings, says the new US copper tariffs are “a dumb idea” – and the consequences could ripple through global supply chains and fuel inflation.

Why Copper Matters

Copper is essential to the modern economy – used in plumbing, electrical systems, and the data centres powering Big Tech. Often called Doctor Copper for its ability to reflect economic health, the metal is a key input in construction, technology, and infrastructure.

Why These Tariffs Could Backfire

As Henry explains, you can’t just flick a switch and increase copper production. While processing can be moved between regions, actual mining takes years to ramp up. That’s why we’re now seeing what he calls “the great race” – a rush to ship copper into the US before the proposed tariffs take effect in August. Ports as far-flung as Hawaii and Puerto Rico are being used to fast-track deliveries.

The US Copper Shortfall

The US produces around 1.2 million tonnes of copper annually but consumes approximately 1.8 million, leaving a large supply gap. If tariffs push up the cost of imported copper by 50%, domestic producers will have cover to raise their own prices by 20–25% and still remain competitive.

The Inflation Risk

This distortion could have major economic consequences:

• Construction costs may rise

• Infrastructure and tech development could slow

• US inflation could see renewed pressure

“It’s going to cost more to build houses. It’s going to cost more to do an awful lot of things,” says Henry – a shift that could force the US Federal Reserve to act sooner than expected.

Will the US Reconsider?

With the market already reacting, the big question now is whether the US will walk back or soften the tariffs before their full impact is felt. As Henry notes, the unintended consequences could be significant.