US copper prices surge as Trump signals 25% tariff on imports


US President Donald Trump suggested in a speech to Congress that copper imports could be subject to a 25% tariff.
Copper prices surged by more than 5% in New York — leaping further above other global benchmarks — as US President Donald Trump suggested imports of the metal could be subject to a 25% tariff.
Trump’s comments — made in a speech to Congress Tuesday — sparked a frenetic rally in Comex copper prices in Asian hours, as traders reacted to the possibility that tariffs on the metal could be larger than expected, and come much sooner.
Last week, Trump announced that the Commerce Department would undertake a sweeping investigation that could lead to levies on copper on national security grounds. That triggered a sharp rally in Comex prices, opening up a widening gap with equivalent prices in London and Shanghai.
The investigation could take months and the size of the tariffs was not spelled out, but Trump on Tuesday said that he’d ordered for the metal to draw a 25% levy, alongside aluminum and steel.
“I have also imposed a 25% tariff on foreign aluminum, copper and steel,” he said in his address to Congress. “Tariffs are about making America rich again. It is happening and it will happen rather quickly.”
The US president has already signed an executive order to impose that levy on aluminum and steel from March 12.
“A 25% tariff was clearly not what the market was expecting before those comments, and now traders are scrambling to price in the correct level, whatever that might end up being,” said Ole Hansen, head of commodity strategy at Saxo Bank AS. “Whatever the final tariff is, the disruption to global trade flows is very real.”
The surge on the Comex also triggered a smaller rally on the London Metal Exchange, with three-month prices jumping as much as 2.4%. For months, New York futures have been trading at a hefty premium to the LME as investors have priced in the growing likelihood of tariffs, and the additional surge on Wednesday left Comex copper trading about 11.5% higher than the LME, nearing a peak of about 13% seen last month.
The huge differential has already triggered a worldwide hunt for copper that can be shipped to the US before any tariffs are imposed, and traders are likely to redouble those efforts following Wednesday’s fresh surge.
With LME prices hovering around $9 500 a ton and New York prices trading about $1 000 higher, the arbitrage presents a huge opportunity for a market used to operating on razor-thin margins.
Comex copper stockpiles — which surged after a similarly large price spike on the exchange last year — have been drawing down in recent days, indicating that US manufacturers may also be looking to stock up before tariffs come into effect. Meanwhile, requests to withdraw the metal from the LME have surged.
Other metals were also higher on the LME, with zinc adding 2% and aluminum gaining 1.2%.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation