Copper gets 50% tariff, sealing sweep of major HVAC metals

One day after floating that the U.S. would impose a 50 percent tariff on copper imports from all countries, President Trump on Wednesday made it official, announcing that the levy will take effect on August 1. 

Why it matters: While a plethora of tariff announcements have been made since March, copper had previously remained untouched. 

• Wednesday’s announcement puts a tariff cherry on top of all three primary metals used in the HVAC industry, including steel and aluminum, which have faced a 50 percent tariff since June 4. 

State of play: The U.S. imports nearly half of the copper it consumes each year, with the vast majority coming from Chile. Copper prices jumped on the news and are up nearly 40 percent since the beginning of this year. 

• Of note: While the announcement locked in the 50 percent rate, it left unclear whether any product- or supplier-specific exemptions will be put in place. 

In related news: The president late Thursday slapped a 35 percent tariff on Canadian goods starting next month, with the exemption that HVAC products currently enjoy set to remain in place — for now.

What’s next: The Trump administration plans to send letters to additional countries over the coming days, outlining new rates if they fail to make a deal with the U.S. by August 1.