US copper tariff could pressure prices as demand shifts

Published 14/07/2025, 10:42
© Reuters.

Investing.com -- A 50% tariff on U.S. copper imports set to begin August 1, 2025, could put downward pressure on copper prices as demand temporarily decreases when the buyer of the marginal London Metal Exchange (LME) tonne disappears.

Barclays (LON:BARC) expects any impact on LME prices to be short-lived and recommends buying on weakness in their preferred copper plays.

President Trump announced the implementation of the 50% tariff, though specific details about which forms of copper imports will be subject to the tariff and potential exemptions have not yet been revealed.

The Section 232 investigation that prompted this action was commissioned to examine imports of all forms of copper. For comparison, aluminum and steel have been subject to a similar 50% tariff since early June, with the administration excluding scrap imports from tariffs but not granting any country-specific exemptions.

In response to those tariffs, the U.S. landed Midwest aluminum price is now trading at a 48% premium to the LME price, nearly covering the full cost of the additional tariff.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.