Trump’s 50% Copper Tariff: Implications for Key Stocks and ETFs

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“I am announcing a 50% TARIFF on Copper, effective August 1, 2025, after receiving a robust NATIONAL SECURITY ASSESSMENT. Copper is necessary for Semiconductors, Aircraft, Ships, Ammunition, Data Centers, Lithium-ion Batteries, Radar Systems, Missile Defense Systems, and even, Hypersonic Weapons, of which we are building many. Copper is the second most used material by the Department of Defense! Why did our foolish (and SLEEPY!) “Leaders” decimate this important Industry? This 50% TARIFF will reverse the Biden Administration’s thoughtless behavior, and stupidity. America will, once again, build a DOMINANT Copper Industry. THIS IS, AFTER ALL, OUR GOLDEN AGE!”

How Will Trump’s Statement Affect the Stock Market?

This latest post has the potential to affect the stock market. That’s because Donald Trump’s announcement of a 50% tariff on copper could lead to increased volatility in the stock market, particularly affecting companies like Freeport-McMoRan, Inc., Rio Tinto, and Southern Copper Corp, which are directly involved in copper production. The tariff may drive up costs for industries relying on copper, potentially impacting the Technology Select Sector SPDR Fund and SPDR S&P Metals & Mining ETF, as these funds have significant exposure to sectors dependent on copper. Additionally, the iShares U.S. Aerospace & Defense ETF might experience fluctuations due to the increased costs in defense manufacturing, which heavily relies on copper.

Here are some of the stocks that might be affected:
Freeport-McMoRan, Inc. ((FCX)),
Rio Tinto ((RIO)),
Southern Copper Corp ((SCCO)),
Technology Select Sector SPDR Fund ((XLK)),
SPDR S&P Metals & Mining ETF ((XME)),
iShares U.S. Aerospace & Defense ETF ((ITA)).