Copper tumbles globally after Trump’s 50% tariff call

Copper prices on the London Metal Exchange and the Shanghai Futures Exchange slipped on Wednesday as the announcement of U.S. copper tariffs signalled an end to a months-long arbitrage trade that had drawn the metal from global markets.

U.S. President Donald Trump said on Tuesday he would announce a 50% tariff on copper, sending U.S. Comex copper futures up more than 12% to a record high.

U.S. Commerce Secretary Howard Lutnick said shortly afterwards the copper tariffs would likely be in place by the end of July or August 1.

“The announcement is like a loud thunder in the middle of the night, very sudden, and a 50% tariff is much higher than the expected 25%,” said a Beijing-based metals analyst, who is not authorised to speak to media.

Since the tariff investigation was announced in February, traders have shipped copper out of warehouses around the world to the U.S. in anticipation of the higher prices. Comex inventories are at the highest level since 2018.

That trade’s days are now numbered given how little time is left to move copper before the deadline, potentially freeing up supply outside the U.S. as the cutoff date looms. Prices reflected the coming shift. Amid a record high on Comex, three-month copper on the LME slipped 1.2% to $9,675 per metric ton by 0346 GMT, and the most-traded copper contract on the SHFE fell 1.1% to 78,580 yuan ($10,944.29) a ton. “There is almost nobody in Asia buying copper for delivery to the U.S. right now given how little time there is before the deadline,” according to Michael Wu, a copper analyst at Shanghai Metals Market, adding that shipments from Latin America are likely the only ones able to make the deadline.

LME nickel fell 0.5% to $14,965 a ton, lead down 0.6% to $2,044, while tin eased 0.2% to $33,370, zinc went down 0.4% at $2,709, and aluminium edged 0.5% lower to $2,574.

SHFE nickel fell 1.4% to 118,960 yuan a ton, while lead gained 0.5% to 17,195 yuan, zinc was steady at 22,010 yuan, aluminium went up 0.2% to 20,525 yuan, and tin inched up 0.2% to 264,880 yuan.

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($1 = 7.1800 Chinese yuan renminbi)