On Tuesday, copper prices experienced a significant surge following President Donald Trump’s declaration of a 50% tariff on copper imports, a move aimed at bolstering domestic production of this essential metal.
The announcement, made during a Cabinet meeting in front of the media, caused copper prices to reach an all-time high. This latest tariff initiative comes after Trump’s earlier decision to begin a national security review of copper imports, which is expected to conclude this summer.
“Today we’re doing copper,” Trump stated, confirming the 50% tariff but did not clarify whether it would apply to imports from specific countries. Commerce Secretary Howard Lutnick later indicated that the tariffs would take effect either in late July or August.
In reaction to the news, copper futures surged 13% — marking the largest single-day increase in the commodity’s history, indicating tighter constraints on an already highly sought-after metal.
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Phil Flynn, a senior market analyst at Price Futures Group and Finance Newso Business Network, noted in an investor memo that copper is already grappling with a “structural shortage” due to its high demand as a conductor of electricity, particularly with the rising energy needs from data centers and artificial intelligence technologies.
Flynn elaborated that the market has become acutely aware of the critical linkage between global copper supplies and the anticipated demand, suggesting that a significant disruption may be required to elevate prices further to meet future needs.
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Adam Turnquist, chief technical strategist at LPL Financial, pointed out that the market was taken by surprise, as a significantly lower tariff rate had been anticipated. He remarked that the heightened domestic demand for copper has driven local prices to a 25% premium over the London Metal Exchange rates, which could result in a global supply shortfall.
“Increasing copper prices could have far-reaching implications for industries reliant on copper, including construction, manufacturing, electric vehicles, and electronics,” Turnquist stated. “The extensive use of copper may also raise inflationary pressures.”
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In 2025 alone, copper prices have surged over 37%, with a notable 29% increase in the last six months and a rise exceeding 12% in the past month. Over the past year, prices have risen more than 21%.
Finance Newso News Digital’s Michael Dorgan and Reuters contributed to this report.
