This has not happened for more than 50 years: copper prices in the United States are breaking records
Copper prices in the United States soared to record levels. This happened after President Donald Trump announced that Washington would impose 50% duties on industrial metals as part of an escalating trade war.
The Financial Times writes that the prospect of higher duties on copper has caused a stir to consolidate supplies and prices for the metal, which is widely used in electronics, construction and industrial equipment.
Commerce Secretary Howard Lutnick said in an interview with CNBC that he expects the introduction of duties on copper as early as the end of this month or early August.
Copper futures in New York soared 13% to $5.69 per pound, which is a record and the biggest jump since 1969.
"We expect the official confirmation of the 50% rate within a few weeks and its introduction within 30 days. We believe this is a turning point for the copper market in 2025, as the upcoming imposition of tariffs should dramatically close the window for further significant copper shipments to the United States, possibly before the end of 2025," Citi analysts said.
Chile is the largest supplier of refined copper to the United States, accounting for about 70% of imports in dollar terms, followed by Canada and Peru.
Rosario Navarro, president of the Chilean industrial lobby, warned that duties of up to 50% could lead to a "significant deterioration" in the country's trade conditions.
Mining Association of Canada President Pierre Gratton said billions of dollars worth of energy infrastructure such as copper pipes will be supplied to the U.
S. as part of an integrated North American industry. He added that Washington does not have sufficient copper processing facilities or smelters, so it relies on Canadian imports of the metal, adding that such high duties "will damage production in the United States."