Copper prices have surged to record highs — and they could jump higher. Here’s why

Global stock markets have largely shrugged off President Donald Trump’s renewed tariff campaign. In commodities markets, however, tariff threats have sent the price of copper soaring to all-time highs — signaling the potential for higher tariff-induced prices for a metal with critical uses across the US economy.

Copper is at the core of the American economy. It’s in the wires of our pervasive electronics, in the walls of homes and in the engines of cars. Experts say President Donald Trump’s plan for tariffs on the red metal could stymy the goal of boosting American manufacturing while potentially igniting inflation. Trump’s July 8 announcement of a 50% tariff on copper imports beginning August 1 sent prices surging 13% in one day, up to a record high of $5.69 per pound. It was the biggest single-day increase in copper prices on record going back to 1968, according to FactSet. And those prices could just be a sign of things to come. A 50% tariff would be a “massive tax on consumers of copper,” Ole Hansen, head of commodity strategy at Saxo Bank, said in a note. While Trump says his copper tariff is needed to spur domestic production due to national security concerns, there is no quick fix. The US imports over 50% of the copper it needs, primarily from South America, Hansen said, “with no clear path to improving that for years to come.”