Copper prices are soaring as traders rush to send the metal to the US amid fears of potential tariffs. The price of copper broke the $11,000 per tonne mark in New York on Thursday. This surge is part of the broader turmoil from US President Donald Trump’s efforts to reshape global trade.
Last month, Trump instructed the Commerce Department to investigate copper imports, which many see as a precursor to imposing duties. Copper futures on the COMEX rose by 0.3%, trading at approximately $11,270 per tonne by 1 p.m. ET. This represents a nearly 13% premium over trading on the London Metal Exchange (LME), where prices recently crossed the $10,000 threshold.
Wei Lai, deputy trading head at Zijin Mining Investment Shanghai Co., stated that “this is a round of cross-regional repricing triggered by potential US tariffs. Cargoes are lured to the US, leaving other places in shortfall. Buying sentiment is very strong.”
So far, Trump has imposed 25% import levies on steel and aluminum, targeting Canada, Mexico, and China.
The investigation into copper imports might not yield recommendations until later this year, but financial institutions like Goldman Sachs and Citigroup anticipate 25% import duties by the end of 2025.
Copper prices soar amid US tariffs
COMEX copper prices are now up 27% since the beginning of the year, while LME prices have risen about 14%.
This discrepancy creates a strong incentive for traders and producers to redirect supplies to the US. Sources indicate that more than 100,000 tons of copper may currently be en route to America, with major players such as Trafigura Group and Glencore shifting their supply lines from Asia. Not only have trade disruptions drawn copper from the LME’s global warehouse network, but other factors also support the price rally.
A weaker dollar generally benefits copper prices, and the US dollar has softened notably since Trump’s latest trade actions. Moreover, tight conditions in the copper supply chain have bolstered prices, with smelters facing difficulties securing raw materials despite a frenzy of expansions. There have been numerous bold price forecasts in recent years, based on potential shortages as demand from green industries grows.
Major miners such as BHP Group and Rio Tinto are ramping up production, while traders and investors stand to profit from shifting copper supplies. Meanwhile, US manufacturers are bearing costs that already factor in significant tariffs. In a related development, aluminum premiums in the US hit a record high last week, following Trump’s implementation of a 25% blanket import duty.
