Your copper pots may have just gone from an indulgent purchase to a family heirloom.
US copper prices recorded their biggest one-day spike ever yesterday—jumping about 13% to a record $5.69 per pound—after President Trump threatened a 50% tariff on copper imports.
For the past few months, copper prices have been spiking as US traders hoarded copper before the anticipated tariffs hit. But still, many investors and economists had been expecting the levies to only reach 25% and be implemented later in the fall.
Another catch? While US copper prices surged yesterday…the global benchmark fell.
- “The surging demand for U.S. copper ahead of the looming tariffs has pushed domestic prices to a +25% premium over copper trading at the London Metal Exchange (LME),” Chief Technical Strategist for LPL Financial Adam Turnquist wrote in a note.
- “Furthermore, LME copper inventories have been significantly depleted, raising concerns about a global supply shortage outside the U.S.”
The timeline: Commerce Secretary Howard Lutnick added on CNBC yesterday that the copper tariff would be put in place at “the end of July, maybe August 1.”
When the tariffs are implemented, American consumers and businesses could be shelling out roughly $15,000 per metric ton, compared to the $10,000 the rest of the globe would pay, according to Benchmark.
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Worth a pretty penny
While the metal retreated somewhat today, analysts are expecting prices to remain high over the coming months.
Why copper is a BFD: More expensive copper isn’t just relevant to futures market traders. While Trump has imposed a 50% tariff on aluminum and steel, the same tax on copper imports raises far bigger concerns for the economy.
For one, the US imports roughly half its copper. Chile is the largest exporter of copper into the US, followed by Canada, Peru, and Mexico. While Trump has pledged to ramp up domestic copper production, experts warn that the process could take years.
And demand for the metal is expected to explode over the next decade, given its role as a key ingredient for building data centers, electric vehicles, clean energy, and the power grid—which means the AI infrastructure buildout and American manufacturing at large could cost a lot more. Not to mention the downstream effects on the housing market, inflation prints, and prices for consumers.
One beneficiary? Copper miners. Specifically, Freeport-McMoRan and Southern Copper are two stocks that could be winners, according to Bank of America.—LB