*

Trump administration announced Section 232 investigation

into

U.S. copper imports in Feb

*

Chile, Canada and Mexico are top suppliers to the U.S.

*

U.S. Comex copper futures hit record high

(Adds industry context, reaction from copper companies

throughout)

By Andrea Shalal, Jarrett Renshaw and Ernest Scheyder

WASHINGTON, July 8 (Reuters) - President Donald Trump

said on Tuesday he will announce a 50% tariff on copper later in

the day, aiming to boost U.S. production of a metal critical to

electric vehicles, military hardware, the power grid and many

consumer goods.

Trump's decision to impose copper tariffs surprised

markets - coming earlier and at a higher rate than the

industry had expected

.

U.S. Comex copper futures jumped more than 12% after the

announcement to a record high.

Trump told reporters at a White House cabinet meeting

that he planned to make the copper tariff announcement later in

the day but he did not say when the tariff would take effect.

"I believe the tariff on copper, we're going to make

50%," Trump said.

U.S. Commerce Secretary Howard Lutnick said in an

interview on CNBC on Tuesday that the copper tariffs would

likely be put in place by the end of July or August 1.

The Trump administration announced a so-called Section 232

investigation into U.S. imports of the red metal in February.

The deadline for the investigation to conclude was November and

it was unclear whether the fresh tariffs meant the investigation

had concluded.

The White House did not immediately respond to a request

for comment.

The National Mining Association declined to comment,

saying it preferred to wait until details were released. The

American Critical Minerals Association did not immediately

respond to requests for comment.

Copper is used in construction, transportation,

electronics and many other industries. The United States imports

roughly half of its copper needs each year.

Major copper projects across the United States have

faced strong opposition in recent years due to a variety of

reasons, including Rio Tinto and BHP's

Resolution Copper project in Arizona and Northern Dynasty

Minerals's Pebble Mine project in Alaska.

Shares of the world's largest copper producer,

Phoenix-based Freeport-McMoRan ( FCX ), shot up nearly 5% in

Tuesday afternoon trading. The company, which produced 1.26

billion of copper in the United States last year, did not

immediately respond to a request for comment.

Freeport - which would benefit from U.S. copper tariffs

but

worries that the duties would hurt the global economy

- has advised Trump to focus on boosting U.S. copper

production.

Countries set to be most affected by any new U.S. copper

tariff would be Chile, Canada and Mexico, which were the top

suppliers to the United States of refined copper, copper alloys

and copper products in 2024, according to U.S. Census Bureau

data.

Chile, Canada and Peru - three of the largest copper

suppliers to the United States - have told the Trump

administration that imports from their countries do not threaten

U.S. interests and should not face tariffs. All three have free

trade deals with the United States.

Mexico's Economy Ministry, Chile's Foreign Ministry and

Canada's Finance Ministry did not immediately respond to

requests for comment. Chile's Mining Ministry and Codelco copper

miner declined to comment.

A 50% tariff on copper imports would be a hit to U.S.

companies that use the metal because the country is years away

from meeting its needs, said Ole Hansen, head of commodity

strategy at Saxo Bank.

"The U.S. has imported a whole year of demand over the

past six months, so the local storage levels are ample," Hansen

said. "I see a correction in copper prices following the initial

jump."