Copper futures hit record highs on Trump tariff announcement

U.S. copper futures are trading at $5.60 per pound this morning, according to CME data, following a surge of over 13% to all-time highs last night. The rally came after President Donald Trump announced a 50% tariff on imports of so-called "red gold." Copper prices are up around 37% year-to-date.

The move aims to boost domestic production and reduce U.S. reliance on foreign sources. The U.S. currently imports nearly half of its copper, with Chile the largest supplier (shipping $6 billion worth of copper last year), followed by Canada. According to the U.S. Geological Survey, the U.S. imported about 810,000 tons of refined copper last year—about half of its total consumption.

Goldman Sachs expects copper shipments to the U.S. to accelerate in the coming weeks following the tariff announcement. The bank maintains its December 2025 price target for copper on the London Metal Exchange (LME) at $9,700 (currently $9,625), though it now sees a reduced risk of prices exceeding $10,000 in Q3.

U.S. Commerce Secretary Howard Lutnick said the tariffs will likely take effect by late July or August 1. Trump had ordered a probe into copper imports back in February under a law that grants the president authority to impose tariffs on national security grounds.

Copper—the third most used metal globally—is vital for electronics, machinery, and automotive manufacturing. Chile accounts for more than a third of global copper production, followed by the Democratic Republic of the Congo, Peru, China, the U.S., Australia, Indonesia, Zambia, Canada, and Poland.