On New York’s Comex, copper prices fell sharply after Chile’s finance minister said he’d ask Washington to exempt his country from the new levy. At the same time, U.S. phone shipments in Q2 rose by just 1%.
At its weakest, Comex copper dropped as much as 6.2% to $5.4265 per pound before recovering some losses. Bloomberg reported that Chile, which supplies roughly half of America’s imported copper, saw the market sell off after Mario Marcel told Radio Duna he’d press for an exemption when trade discussions resume in Washington.
The downturn follows President Trump’s unexpected declaration of a 50% tariff on copper imports, taking effect on August 1. The high tariff surprised analysts, and since it’s unclear which copper forms will be taxed, companies don’t know how to prepare.
Marcel told Radio Duna that past agreements exempted raw materials like UK steel and that he’ll seek the same waiver for copper when talks begin. He also ruled out retaliatory tariffs, saying they would only drive up prices for Chilean consumers.
U.S. manufacturers face higher costs
Officials in Santiago emphasize that U.S. industries, heavily dependent on foreign copper, would have no alternative but to absorb the extra expense if exemptions are denied.
Marcel said, “It wouldn’t be much use to have a trade agreement that excludes copper and timber, which make up more than half our exports to the U.S.”
After launching a national security probe in February, the administration signaled possible copper tariffs. That pushed U.S. prices above global rates and tempted traders to accelerate shipments to U.S. ports and lock in gains before any duties are applied.
As August 1 drew near, ships rushed to U.S. ports and triggered a buying spree. By Monday, Comex copper still commanded roughly a 27% lead over LME levels. That day in New York, prices ended 2.9% lower at $5.6155 per pound, as the LME benchmark ticked up 0.2% to $9,793 a tonne.
India-made phones rise as U.S. tariffs shift production
Meanwhile, the U.S. smartphone sales saw minimal growth, roughly 1% year‑on‑year in Q2, as manufacturers front‑loaded inventories in anticipation of levies. On Monday, Canalys said U.S.–China talks helped boost shipments of India‑made phones, making up for drops elsewhere.
Worried about the new levies, numerous manufacturers have relocated output away from China, where electronics face heavy duites.
“The market only grew 1% despite vendors front‑loading inventory, indicating tepid demand in an increasingly pressured economic environment and a widening gap between sell‑in and sell‑through,” added Runar Bjorhovde, senior analyst at the firm.
Earlier this year, Apple moved to have the bulk of its U.S.‑market iPhones assembled at Indian plants, a shift that drew threats of further levies from President Trump if domestic production targets weren’t met.
“India became the leading manufacturing hub for smartphones sold in the U.S. for the very first time in Q2 2025, largely driven by Apple’s accelerated supply chain shift to India amid an uncertain trade landscape between the U.S. and China,” said Sanyam Chaurasia, principal analyst at Canalys.
By Q2 2025, China’s portion of U.S. assembled smartphones shrank from 61% to 25%, while volumes assembled in India jumped 240% year‑on‑year. During that same span, iPhone shipments slid 11%, in contrast to Samsung’s 38% gain.
Meanwhile Huawei surged to the top of China’s market by shipping 12.2 million units through June, fueling a 15% year‑on‑year revenue rise and lifting its share to 18%.
