Copper Reaches Record Highs on US Tariff Expectations, Retreats on Policy Uncertainty
- Copper hit $14,875/t record on US tariff hopes.
- Copper fell >3% on White House tariff uncertainty.
- Copper faces first weekly loss amid tariff doubts.
Copper prices on the London Metal Exchange (LME) recently surged to new all-time highs, with three-month futures nearing $14,875 per tonne. This rally was primarily fueled by market anticipation of potential US tariffs on refined copper imports, alongside reports of tight near-term supplies. However, the metal subsequently experienced a sharp decline of over 3% after news emerged that the White House has not yet made a decision regarding these proposed tariffs. This reversal highlights how a significant “tariff premium” had built into prices, pushing them ahead of confirmed policy. Market participants are now closely monitoring policy developments, as any delay or softening of tariffs could lead to further price adjustments.
Copper is heading for its first weekly loss since June, driven by intensifying doubts that the US is pushing back a decision on imposing import tariffs. A Reuters report indicated the US decision on refined Copper tariffs is still pending. The metal dropped more than 3% on Thursday after reaching a record high of $14,875/t on the London Metal Exchange. Analysts highlight a “tariff premium” that has pushed prices beyond fundamentals, making near-term prices highly sensitive to tariff-related news.