Copper prices in the United States surged to an unprecedented high of $12,330 per metric ton on Tuesday, marking a more than 10% spike in a single day, following President Donald Trump’s surprise announcement of a 50% tariff on copper imports.

The announcement came during a White House cabinet meeting, sending immediate shockwaves through global commodities markets. Though President Trump did not provide a specific timeline for the tariff’s implementation, the declaration alone triggered a frenzy of speculative and strategic buying, further fueling volatility in an already fragile metals market.

The tariff marks a significant escalation from the previous 25% copper tariffs imposed under Trump’s earlier trade agenda, and has dramatically widened the price gap between U.S. copper and the London Metal Exchange (LME) benchmark, which now stands at over $1,200 per ton.

Analysts attribute the record-breaking copper price rally to a confluence of factors, including global supply limitations worsened by years of underinvestment in mining, ongoing supply chain disruptions, strategic stockpiling by major consumers like China, and a weaker U.S. dollar, which typically drives up commodity prices.

The copper market has already endured a turbulent 2025, with prices peaking in March, then briefly retreating before resuming their upward trajectory amid persistent trade tensions and a robust demand surge from the green energy and electric vehicle (EV) sectors.

Copper is a core material in EV production—used extensively in batteries, motors, and power electronics. Experts warn that the new 50% tariff could add as much as $275 in raw material costs per electric vehicle, inflating prices across the automotive industry and potentially stoking broader inflationary pressures.

While the policy is intended to bolster domestic production and reduce reliance on foreign imports, industry experts caution that U.S. copper supply chains are not yet equipped to meet surging demand. Scaling up mining and refining capabilities is a long-term endeavor, and until such infrastructure is in place, elevated copper prices are likely to persist.

The newly announced 50% U.S. tariff on copper imports is poised to send ripple effects across the global economy, with China, the world’s largest copper consumer, likely facing tighter supplies and elevated import costs. Traders are urgently rerouting shipments and locking in prices to mitigate the impact of the potential tariff implementation, while global manufacturers warn of significant disruptions across industries, including construction, electronics, renewables, and transportation.

The decision has already drawn criticism from economists and trade experts who warn it could fuel inflation, strain U.S.-China trade relations, and destabilize global copper supply chains. Nonetheless, the Trump administration has defended the move as part of a broader strategy to revitalize American industry and secure critical minerals for national infrastructure and defense.

“As global trade flows adjust to this dramatic shift, industries and consumers around the world will feel the impact,” said one market analyst. “This is not just about copper—it’s about the future shape of global trade, industrial policy, and resource competition.”

As markets brace for further volatility, all eyes remain on the White House for details on when and how the new tariff will be implemented—and how America’s trading partners will respond. (ILKHA)