US copper prices surged to a record high on Tuesday, soaring 138% as the government announced potential 50% import tariffs on the metal. The move has significant implications for businesses and the US economy.
The huge price discrepancy between US and global copper prices is expected to have a major economic impact, with analysts warning of a hit to households and the wider US economy. Trump’s 50% tariff on imports will make already elevated prices even higher, with some experts predicting that companies may pass these costs on to consumers.
US copper imports account for just under half of domestic demand, used in products ranging from machinery to household goods. The government’s aim is to increase domestic production, but this will take years and decades to ramp up, requiring significant upfront investment.
Traders have been positioning themselves for a presidential announcement on copper duties since February, leading to shifts in inventories away from Europe and Asia and into the US. However, market participants remain uncertain about the rate and timing of the tariffs.
US copper prices rose 13% on Tuesday, marking a record close of $5.69 per pound. The global benchmark price rose just 0.3%. The huge premium between US and global copper prices has fluctuated between $500 and $1,500 since Trump announced a probe into copper in February.
Analysts warn that the significant price increase will start to have an economic impact, with some predicting that companies may opt for cheaper goods produced abroad. The cost of copper is expected to make infrastructure investments more expensive, potentially affecting employment rates.
Industry experts also caution that increasing domestic production faces significant obstacles, including permitting delays and high upfront costs. They warn that the US cannot immediately substitute imported products with domestically-made ones, citing a reality that will have to be dealt with in terms of price and availability.
Source: https://www.cnbc.com/2025/07/09/us-copper-price-premium-economic-consequences.html