U.S. copper futures hit a record $5.183 per pound.
U.S. copper prices have risen 28% YTD, far outpacing the 13% increase in international prices.
AS president Trump signals potential copper import tariffs, U.S. manufacturers are stockpiling copper due to tariff concerns.
Opinion
Uncertainty surrounding U.S. tariff policy is driving copper prices higher and amplifying supply chain instability, increasing cost pressures on manufacturers.
Core Sell Point
The sharp rise in copper prices highlights the risk of supply chain disruption and higher input costs for manufacturers triggered by U.S. tariff policies.
U.S. copper prices surged to an all-time high on concerns over the Trump administration's potential import tariffs on copper. On March 25, U.S. copper futures soared to $5.183 per pound, surpassing the previous record set in May last year. So far this year, U.S. copper prices have jumped approximately 28%.
The surge is especially notable when compared to global copper prices. Copper on the London Metal Exchange (LME), the international benchmark, has risen about 13% YTD to $4.44 per pound, leaving a significant gap versus the U.S. market's 28% increase. The Wall Street Journal described this as an “unprecedented price gap.”
The primary driver behind the surge is President Trump’s indication that copper tariffs could be introduced under the banner of national security. In response, U.S. manufacturers and suppliers have rushed to secure inventories ahead of the potential tariffs, exacerbating the supply-demand imbalance.
Copper is essential for manufacturing automobiles, smartphones, as well as electric and water infrastructure. With China’s ongoing modernization, data center expansion, and the rise of green industries, global copper demand continues to grow. If U.S. tariffs materialize, it could significantly strain global copper supply chains.
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