FX.co ★ Copper Rises as US Tariff Set to Begin Aug. 1

Copper futures surged to approximately $5.60 per pound on Thursday, nearing historic highs, following the confirmation from US President Donald Trump that a 50% tariff on copper imports would be implemented starting August 1. In a statement on Truth Social, Trump mentioned the decision came after a national security review, underscoring copper's strategic significance. He highlighted its role as the second most-utilized material by the Department of Defense and its critical applications in sectors like semiconductors, aerospace, ammunition, data centers, lithium-ion batteries, radar systems, missile defense, and hypersonic weapons. This development led to a record 25% premium on US copper futures compared to the London Metal Exchange contracts, as international indices dipped. This shift indicates the cessation of growing domestic stockpiles, as traders have been channeling copper into the US since threats of tariffs on base metals emerged in February.