US Tariff Threat Sends Copper Prices Soaring to All-Time High

The copper market is in turmoil due to the threat of US import tariffs, which has pushed prices to an all-time high. The three-month copper contract on the London Metal Exchange (LME) reached as high as $14,343 per metric ton on Tuesday, just shy of its record $14,527.50. This rally is not due to a global shortage of copper, but rather a shortage of available metal outside the US.

Analysts say that the threat of tariffs has drained inventories elsewhere, with 65,400 tons being withdrawn from LME warehouses in recent days. The large-scale orders, known as warrant cancellations, came after last week's increase in available material on the LME and Shanghai Futures Exchange appeared to ease concerns about tight supplies.

Robert Edwards, principal copper analyst at CRU, said that the threat of tariffs has turned what should have been a surplus this year into 'at best a balanced market'. He added that if US imports continue at their current rate, it will look like a deficit market in reality.

The US imported almost 885,000 tons of refined copper cathodes in the first half of 2026, more than double the imports in the same period last year. The Commerce Department is due to report on copper markets by June 30 this year, which could lead to a 15% tariff from January 1, 2027.