Copper Prices Soar Amid Global Supply Deficit and Tariff Fears

Copper prices reached new record highs above US$14,300 per tonne in August 2026, driven by a deepening global supply deficit and traders moving physical copper into the United States ahead of a potential 15% import tariff proposed for January 1, 2027.

Jacob White, Director of ETF Product Management at Sprott Asset Management, explained that earlier expectations of a much higher tariff had already created a significant premium for U.S. copper prices relative to European markets, encouraging additional imports and tightening global supply.

White highlighted long-term production challenges, pointing to Codelco in Chile, historically the world's largest copper producer, where output has declined over the past two decades despite much higher copper prices.