Freeport-McMoRan to Benefit from Trump's Copper Tariff

President Donald Trump’s proposed copper tariff could boost Freeport-McMoRan’s annual profit by $1.6 billion, as the firm is the largest U.S. producer with expansion options. Freeport controls 60% of U.S. copper output and has decades of growth potential without fresh permits, unlike other companies facing challenges in American mining.

Trump’s 50% copper import tariff announcement sparked questions about U.S. copper procurement, given the lengthy mine development process. Freeport’s stock rose 5% with the news, as the company sells all its U.S. product inside the country, benefiting from higher Comex copper prices and potential tariffs.

Jefferies analyst Chris LaFemina stated that the U.S. aims to be self-sufficient in copper long-term, but mines take years to develop. U.S. imports roughly half of its copper needs from countries like Chile, Canada, and Peru, with China being the largest consumer. Global copper demand is expected to rise by 60% by 2050.

Freeport could see a profit windfall of $800 million annually from higher prices due to the copper tariff. The company’s EBITDA could increase by $1.6 billion annually, based on $10 billion in 2024 EBITDA. Freeport has not commented on the full tariff plan until further review.

Read more at Yahoo Finance: Analysis-Freeport-McMoRan poised to gain from Trump’s copper tariff against peers with few options