The United States may impose tariffs on imported copper months ahead of schedule, a move that has caused significant volatility in the copper market. According to informed sources, U.S. President Trump has directed the U.S. Department of Commerce to expedite the investigation into copper tariffs, anticipating a resolution far earlier than the originally planned 270 days. This change means the original timeline for the copper tariff investigation will be compressed, with a decision possibly being made within weeks.
Trump has repeatedly expressed his intention to impose tariffs as high as 25% on imported copper, stating that such a move could disrupt the global copper market. Copper is one of the most widely used metals in the world, extensively utilized in fields like piping and cabling. Previously, Trump initiated a 10-month investigation before imposing tariffs on steel and aluminum, but this copper tariff inquiry appears to be progressing more swiftly, highlighting his strong policy intentions.
With the impending tariffs, New York copper prices once surged to $5.3740 per pound, a historic high, before gains narrowed to around $5.3005 per pound. Meanwhile, the benchmark price for London copper slightly declined to $10,100 per ton, widening the price gap between the two markets to over $1,600 per ton. The fluctuations in copper prices have drawn global traders' attention, particularly leading to a shortage, as merchants rush to ship copper to the U.S. for high premiums.
Analysts from Goldman Sachs and Citigroup expect the U.S. to officially implement a 25% copper tariff by the end of the year, which could further drive up copper prices, potentially rising from the current $10,000 per ton to $12,000.
Additionally, U.S. copper mining stocks saw widespread gains on Tuesday, with shares of Taseko Mines, Freeport-McMoRan Copper & Gold, and Southern Copper rising over 4%, 3%, and 2% respectively. This performance reflects the market's strong anticipation of the impending copper tariffs.
