Copper Prices Hit Record Highs Amid U.S. Tariff Fears

Copper prices are approaching all-time record highs as traders aggressively stockpile the metal within the United States. Three-month copper on the London Metal Exchange recently rose to US$14,343 per metric ton, a surge driven by a shortage of available supply outside the U.S. rather than a global deficit.

Donald Trump is currently deciding whether to implement import tariffs on refined copper, with proposed rates of 15 percent starting January 1, 2027, potentially rising to 30 percent by 2028. In anticipation of these duties, COMEX inventories have climbed for 46 consecutive days to a record 675,185 metric tons. The United States Department of Commerce was tasked with reporting on copper markets by June 30, 2026, to inform the president's final decision.

Market reactions to the potential tariffs remain divided. Some analysts expect massive price spikes if the duties are enacted. Conversely, Glencore CEO Gary Nagle suggests that prices may fall once the market gains clarity on final duty rates, noting that high U.S. stockpiles will likely be used domestically rather than exported due to the associated costs.