Copper Prices Soar on Supply Deficit and Tariff Expectations

Sprott Asset Management's Jacob White says copper prices have surged to new record highs above $14,300 per tonne in August 2026 due to 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.

The expected tariff has created a significant premium for U.S. copper prices relative to European markets, encouraging additional imports and tightening global supply. White notes that earlier expectations of a much higher tariff had already caused this premium, further limiting the industry's ability to respond quickly to higher prices.

Codelco in Chile, historically the world's largest copper producer, has seen output decline over the past two decades despite higher copper prices. Developing new copper mines is also a slow process, taking an average of 17.5 years from discovery to production.