Copper surges to $10,000, propelled by Trump’s tariff threats
Copper surged beyond its important benchmark of $10,000 per ton following weeks of global trade disruption caused by President Donald Trump’s call for tariffs on the critical industrial metal.
Last, Trumpp directed the US Commerce Department to examine US copper imports as a potential preliminary step towards slapping tariffs. Since then, US prices have skyrocketed, and merchants have hurried to get metal to America ahead of any taxes, decreasing supplies in the rest of the globe. On Thursday, copper on the London Metal Exchange jumped as much as 0.5% to $10,040 a ton, the highest level since October, while New York’s Comex prices approached a new high.
“This is a round of cross-regional repricing triggered by potential US tariffs,” explained Wei Lai, deputy trade director of Zijin Mining Investment Shanghai Co. “While cargoes are drawn to the United States, other countries suffer a shortage. “Buying sentiment is powerful.”
Copper’s spike is only one example of the upheaval caused by Trump’s efforts to restructure global commerce and strengthen defenses for US local industries. He has imposed 25% import tariffs on steel and aluminum, taxes on Canada, Mexico, and China, and has pledged broad “reciprocal” tariffs beginning next month.
The inquiry into copper imports will likely provide recommendations until later this year. However, Goldman Sachs Group Inc. and Citigroup Inc. are among those who expect the US to impose 25% import duties on copper by the end of 2025. Comex copper prices have been up 27% since the beginning of the year, while LME prices have been roughly 14%. The large disparity has provided a significant incentive for dealers and manufacturers to continue shipping supply to the United States, and more than 100,000 tons may be on the way. According to persons familiar with the deals, major commodities firms such as Trafigura Group and Glencore Plc are diverting metal from Asia.
