Copper futures in New York spiked a record 17% on Tuesday after U.S. President Donald Trump announced plans for a 50% tariff on imports — a move likely to send shockwaves through global metal markets. By early Wednesday, prices retreated 4%, but still held a 24% premium over London benchmarks.
At 8:23 a.m. in Shanghai, Comex copper traded at $5.5085 per pound, while London prices dropped to $9,627 per ton. Traders have been rushing copper shipments into the U.S. ahead of the proposed tariffs, with expectations of further short-term price surges.
Juan Carlos Guajardo of Plusmining noted that the market had anticipated a lower rate, fueling a pre-tariff buying spree. Trump confirmed the tariff plan during a Cabinet meeting, stating: “We’re going to make it 50%.” Commerce Secretary Howard Lutnick later said the measure could take effect by August 1.
The planned levy, introduced under a national security review (Section 232), comes amid soaring long-term demand for copper due to the rise of electric vehicles, renewable energy infrastructure, and data centers. While the tariff may boost Comex prices, Morgan Stanley analysts expect domestic stockpiles to cushion short-term impacts.
Copper plays a vital role across industries—from electronics to construction—meaning U.S. consumers and manufacturers could face higher costs if the tariff proceeds.