U.S. copper markets saw an unprecedented price jump after President Trump announced a 50% tariff on copper imports effective August 1. On July 24, New York copper futures soared to a record $5,263.50 per tonne – an 8.9% increase from the previous close By contrast, the London Metal Exchange (LME) benchmark price held near $9,754/ton (up modestly), reflecting the split in global pricing caused by the tariff. The tariff created a large premium (now ~$3,095/ton) for U.S. copper over world prices. As a result, U.S. copper inventories (in CME warehouses) have more than doubled since March, rising to about 222,723 tonnes by mid-July. London inventories have shrunk as Chinese and other suppliers rerouted metal to the U.S. in search of higher prices. Market analysts describe this as a severe “feast or famine” dislocation: U.S. buyers are awash in imported copper at high prices, while overseas markets face scarcity. Industry experts expect this large inventory imbalance may take many months to normalize, depending on how China’s exports respond to the tariff-driven demand spike. For now, U.S. copper futures are at record highs solely due to the tariff, while global LME prices remain subdued in comparison.
