Copper Imports Skyrocket Ahead of Trump Tariff Decision
US copper imports surged to a record 200,000 metric tons in July, sparking concerns about potential tariff escalation. The sudden increase follows a period of already high demand for refined copper imports, averaging around 140,000 tonnes per month from January 2025 through May 2026.
The surge is attributed to traders positioning themselves ahead of the Commerce Department's updated recommendation on tariffs for refined copper, due by June 30, 2026. Refined copper cathodes, the most commonly traded form of the metal, were initially exempted from Section 232 tariffs, which went into effect on August 1, 2025.
The result is a significant inventory build in COMEX warehouses, with inventories ballooning from approximately 80,000 tonnes to around 650,000 tonnes - an eightfold increase. This represents one of the most dramatic inventory builds the exchange has seen in recent memory.
Global copper prices have reflected the tension, with a premium for US-delivered copper over London Metal Exchange benchmarks remaining elevated. This incentivizes shipments to flow toward American ports rather than to buyers in Asia or Europe.