Trump Tariffs Spur Copper Price Surge Amid Low Inventories

Copper prices have been supported by a combination of President Trump's announcement of new U.S. tariffs on copper and related materials set to begin August 1, and historically low global copper inventories, particularly at major exchanges like the London Metal Exchange, Shanghai Futures Exchange, and COMEX. The tariffs and trade tensions have driven U.S. copper prices significantly higher compared to global peers, with domestic manufacturers buying in anticipation of these levies. While the U.S. dollar’s recent weakness has helped buoy copper prices by making dollar-priced metals cheaper, concerns about economic slowdown and demand growth due to tariffs and rising inventories are capping gains. Stocks of copper in LME warehouses have risen recently, easing some availability concerns, but physical tightness remains evident from market structures such as backwardation and large warrant holdings. Global copper miners' shares have risen modestly, tracking these price movements, although market participants remain cautious amidst mixed economic signals. Overall, the interplay of trade policy, inventory levels, and currency fluctuations is creating significant volatility and upward pressure in the copper market.