Copper (HG=F) futures accelerated to a new record in New York on Wednesday following a report that President Donald Trump is considering implementing tariffs on the commodity in a matter of weeks rather than months.
Futures on New York’s Comex surpassed $5.35 per pound, while a spread in prices between the US and London widened. The threat of tariffs has prompted a rush of shipments to the US.
“We’ve been bullish on copper,” Hedgeye Risk Management energy analyst Fernando Valle told Yahoo Finance. “We think copper will follow a similar trend of what steel has done, which is ramp on the back of tariffs.”
In February, the White House ordered an investigation into US vulnerabilities related to copper imports, a move seen as a precursor to tariffs on the metal.
A Bloomberg report published on Wednesday, citing people familiar with the matter, said that levies on copper imports could be imposed in the coming weeks.
As of 2:41:04 PM EDT. Market Open.
The timeline is quicker than the September-November implementation range expected by Wall Street.
“Assuming tariffs are implemented in May, we think shipments to the US will likely be fast tracked,”wrote Goldman Sach’s Eoin Dinsmore in a note to clients on Wednesday.
Read more about today’s market action on the Yahoo Finance live blog.
Year-to-date, copper futures in New York are up nearly 30%. Though much of the price action has been front-run in recent weeks, analysts point to China’s incentives to boost its economy and European plans for more defense spending as a positive catalyst.
The metal, seen as a proxy for growth trends, is used in everything from electronics to plumbing, electricity grids, construction, transportation, and defense.
“We’re expecting to see large stimuli from Europe and China specifically, which has been the largest buyer of copper — and that could be a significant positive impact even after the tariffs,” said Hedgeye’s Valle.
The surge in prices also comes as AI spending by tech hyperscalers rises, upping demand for the metal. Meanwhile, the downside risk comes down to a full-blown trade war impacting demand.
Escalating “trade tensions threaten the global economy, just as fears of a US recession rise. This could weaken copper consumption and lead to lower prices,” Nikos Tzabouras, market analyst at Tradu.com, warned on Wednesday.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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