White House Rethinks Copper Tariffs, Sending Prices Plummeting
Copper prices have dropped sharply after reaching record highs earlier this week.
The three-month copper futures on the London Metal Exchange (LME) touched unprecedented levels between $14,779 and $14,858.50 per metric ton on September 8 and 9, 2026, while Comex futures neared $6.89 per pound.
This rally propelled copper's year-to-date gains to nearly 19% and its one-year increase to almost 48%, a remarkable feat in the commodities space.
The catalyst for the sharp reversal was a Reuters report revealing that the White House is reconsidering the imposition of a 15% tariff on refined copper imports, initially expected to take effect January 1, 2027, with a possible increase to 30% in 2028.
This news exposed the fragility of the tariff-driven premium that had buoyed prices, triggering aggressive profit-taking and a swift market correction.
The underlying supply-demand fundamentals remain compelling. Declining mine output juxtaposed with surging demand from AI, electrification, and renewables points to sustained price support over the medium to long term.