Copper Futures Surge to Record High as Trump Accelerates 25% Tariff Timeline
1min read Copper futures on New York's Comex exchange soared to an all-time high as traders reacted to the possibility that U.S. tariffs on copper imports could arrive much sooner than expected.
Comex copper climbed to $5.294 per pound on Wednesday, setting a record as speculation mounted that the U.S. could impose tariffs on copper within weeks—months ahead of the initial deadline, according to sources familiar with the discussions.
Ask Aime: What are the implications of early U.S. copper tariffs on the global market?
In February, President Donald Trump directed the Commerce Department to investigate potential copper tariffs, granting officials 270 days to submit their findings. However, sources indicate that the process is advancing rapidly and may conclude well before the deadline. Some insiders view the investigation as a mere formality, given Trump's repeated assertions that he intends to implement the tariffs.
An administration official, speaking on condition of anonymity, confirmed that the review is progressing swiftly and could be finalized much earlier than anticipated. White House trade adviser Peter Navarro reinforced this notion in February, stating:
"You will see our new Secretary of Commerce, Howard Lutnick, move in what I like to call 'Trump time'—as quickly as possible—to get the investigation results on the president's desk for possible action."
Trump has floated the idea of a 25% tariff on all copper imports, a move that could disrupt global markets for the widely used metal, essential for electrical wiring and industrial applications. The speed at which the administration is pushing forward contrasts sharply with the steel and aluminum tariffs imposed during Trump's first term, which took roughly 10 months to finalize.
The widening price gap between London and New York has triggered a global rush to ship copper to the U.S. to capitalize on the lucrative premium. This shift has led to supply shortages in other markets, particularly China, the world's largest copper consumer.
London copper prices have declined as traders anticipate a narrowing supply squeeze, given the limited window to move metal to the U.S. before tariffs take effect.
Meanwhile, goldman sachs and citigroup analysts predict that the U.S. will impose a 25% copper tariff by the end of the year. On March 12, the U.S. officially raised tariffs on all steel and aluminum imports to 25%, though copper remains unaffected—for now.
