U.S. Copper Prices Plummet Following Trump’s Refined Metal Tariff Exemption

Download IPFS

The U.S. copper market saw a dramatic 22 percent drop in prices after President Donald Trump announced a late-stage exemption for refined copper from a planned 50 percent import tariff. The decision triggered the largest recorded single-day price decline in the history of U.S. copper futures, prompting a rapid market realignment as traders reevaluated domestic copper’s value relative to global benchmarks.

Announced less than two days before the new tariffs were set to take effect, Trump’s exemption effectively removed refined copper from the initial round of trade measures. Copper futures on the Commodity Exchange (Comex) in New York fell sharply, erasing the premium they previously held over international prices. The change was significant enough that New York contracts shifted from a premium to a discount compared to the London Metal Exchange (LME) benchmark.

The tariff will still apply to a broad range of copper-intensive and semi-finished products, including pipes, wires, rods, tubes, and electrical components such as cables, fittings, and connectors. However, more basic forms of the metal, like copper ore, concentrates, mattes, cathodes, and anodes, have been excluded from immediate penalties.

Instead of an immediate 50 percent levy on refined copper, the U.S. Department of Commerce has recommended a phased tariff schedule. Under this plan, refined copper imports would be subject to a 15% tariff beginning in 2027, increasing to 30% in 2028. Trump has asked the Commerce Department to deliver a full review of the U.S. copper market by June 2026.

The decision follows a surge of copper imports into the United States earlier this year, as global traders sought to get ahead of the anticipated tariffs. That rush pushed up U.S. prices in the first half of the year, creating what some industry participants described as one of the most lucrative arbitrage opportunities in recent memory. As of Thursday, LME copper traded at $9,642 per metric ton, down 0.6 percent, while Comex copper was priced at $4.37 per pound, reflecting the sharp 22 percent domestic decline.

While the administration’s move may relieve pressure on industries dependent on refined copper, it has also disrupted what had been a profitable pricing dynamic for U.S. traders. The long-term implications will depend on future updates from the Department of Commerce and the global market’s adjustment to this unexpected policy shift.