Trump Tariffs Spark Copper Flood into US
Copper shipments to the United States have surged in recent months as traders anticipate potential tariffs on cathode imports, which could impact global copper prices.
IHS Markit shipping data revealed that over 200,000 tonnes of copper landed in the US last month, a 12-year high for monthly inflows. This pushed combined US-based inventories to above 740,000 tonnes, with an additional 110,860 tonnes held in storage at US ports.
The influx is partly attributed to the Trump administration's proposed tariffs on cathode imports, which has led traders to offload copper stocks from warehouses outside the United States. Bloomberg reported that stock levels at London Metal Exchange (LME) warehouses have tumbled sharply this year, with the outflow also observed in Chinese mainland bonded-warehouse hubs like Lingang.
Analysts warn that if President Trump were to 'chicken out' on imposing tariffs, copper prices in the US could fall in the short term, a scenario dubbed the 'Taco' situation.