Copper price hits record high on Trump tariff plan

Copper prices jumped by double digits on Tuesday after U.S. President Donald Trump announced plans to implement a 50% tariff on the industrial metal.

“I believe the tariff on copper we’re going to make it 50%,” Trump said when asked by a reporter what the rate on those products would be.

In New York, the most-traded copper futures soared to a record $5.9535 per lb. following Trump’s announcement, for an intraday gain of nearly 17%. By early Wednesday, the contracts had eased to around $5.60 per pound.

Price spread

BMO Capital Markets analysts predict the spread between New York and London prices — which reached as high as 26% on the tariff announcement — could “rapidly move towards 50% in the coming days.”

At current London Mercantile Exchange prices of $9,800 per tonne, this implies COMEX copper in New York as high as $6.60 per lb., they said in a note on Wednesday. 

Marcus Garvey, head of commodities strategy at Macquarie Group, also sees the potential copper tariffs as a “bearish development” for London prices.

Garvey added that the exact impact will depend on the details of tariff policy, “not just the headline rate but also to which forms of copper it is applied and whether there is any grace period ahead of its implementation.”

The copper levy is part of a set of looming sectoral tariffs the U.S. President has planned on select industries. Other sectors that may be impacted include drugs and semiconductors.

In late February, Trump directed the Commerce Secretary to open an investigation into foreign copper imports under Section 232 of the Trade Expansion act. It was viewed as a preliminary step for tariffs.