Copper Prices Plunge Amid US Tariff Uncertainty

Copper prices have taken another hit as traders wait for a decision on US tariffs that could impact where the metal is stored and delivered.

The uncertainty surrounding a potential Section 232 tariff on refined copper has already had an effect on US-linked pricing, with COMEX copper falling over 4% last week. Reuters reported a sharp drop in prices on Thursday after the White House failed to make a decision.

Tariff risk plays a significant role in physical copper inventory flows, as traders can pull metal into the US if they think duties are coming. However, if policy signals keep flipping, this trade becomes less reliable, and traders tend to unwind their positions.

The recent flow of physical copper has already started to wobble, with COMEX warehouse inventories slipping 0.02% on Friday to 767,504 short tons (696,268 metric tons) after rising due to tariff-driven inflows, Reuters said.