Copper Floods Into US Amid Trump Tariff Fears
Copper shipments into the US have reached a 12-year high as traders anticipate President Trump's proposed tariffs on cathode imports. According to IHS Markit shipping data, more than 200,000 tonnes of copper landed in the US last month, pushing combined inventories at the New York Commodity Exchange (Comex) and London Metal Exchange (LME) above 740,000 tonnes.
An additional 110,860 tonnes were being held in storage at US ports as of Friday, according to the LME. The data suggests that Trump's tariff threat is pulling copper out of China, with stock levels at LME warehouses outside the US tumbling sharply this year.
Analysts warn that if a 'Taco scenario' unfolds, meaning President Trump 'always chickens out' on tariffs, copper prices in the US could fall in the short term. The current influx of copper into the US is driven by concerns over potential tariffs, which would raise costs for manufacturers and potentially lead to a decrease in demand.