Copper prices on the London Metal Exchange (LME) gained at Thursday’s open as traders reacted to reduced U.S. copper tariffs announced by President Donald Trump. Benchmark LME copper rose 0.9% to $9,785 per metric ton, narrowing the price gap with U.S. futures.
Trump confirmed a 50% tariff on copper pipes and wiring, but notably excluded ores, concentrates, and cathodes. The narrower scope of the measure surprised markets, dragging U.S. copper futures on the Comex exchange down 18% and erasing much of the premium that had surged above $3,000 per ton in recent weeks. At one point Thursday, September Comex futures fell to $4.5095 per pound ($9,941.6 per ton) before rebounding to around $4.5635 per pound ($10,061 per ton).
The premium of U.S. copper over the London benchmark briefly dropped to $157 per ton, prompting speculation of a shift in trade flows. “We think the LME flips to a premium in the short term due to excess inventories in the U.S.,” said Anant Jatia, CIO at Greenland Investment Management. “Over time Comex moves back to a premium as inventories draw and downstream tariffs leave a sustained U.S. premium.”
Analysts note that U.S. copper prices have now returned to pre-tariff levels. Tom Price of Panmure Liberum said, “At $4.5/lb, it’s already back to fair value.”
The tariffs, set to begin Friday, will target semi-finished copper products such as pipes, tubes, cable, and electrical components. The move marks a scaled-back version of Trump’s earlier proposal to tax all copper types, a shift that significantly alters global copper trade dynamics and inventory strategies.