Tariff Threat Sends Copper Prices Soaring

Copper prices have surged to near-record levels on the London Metal Exchange (LME), hitting $14,343 per metric ton on August 25. This unprecedented price spike isn't due to a mine collapse or an increase in demand from electric vehicle manufacturers.

The catalyst for this surge is the threat of US tariffs on refined copper imports, which has triggered a rush of metal into American warehouses. As a result, COMEX inventories have reached a record 675,185 metric tons after 46 consecutive days of gains.

This surplus doesn't feel like one, as every ton parked in US warehouses is a ton that isn't available to buyers elsewhere. The proposed Section 232 tariffs would impose a 15% levy on refined copper imports starting January 1, 2027, escalating to 30% by 2028.