Copper Prices Plunge 20% as Trump Exempts Refined Metal Tariffs

US President Donald Trump's imposition of a 50% tariff on semi-finished copper goods, while exempting refined copper and ores, has caused significant disruption in the global copper market. This tariff decision led to a sharp drop in US copper prices, with Comex copper futures falling more than 22%, while prices on the London Metal Exchange and other markets responded with more moderate declines. Traders are rapidly booking storage space, particularly at London Metal Exchange warehouses, to redirect copper supplies previously destined for the US amid the tariff-induced market dislocations. The tariff move effectively ended a highly profitable arbitrage trade between US and global copper markets, forcing traders to adjust supply chains and logistics to avoid losses. The market reaction reflects broader concerns about trade tensions and their impact on strategic metals critical to energy transition and industrial use. This situation has also caused notable declines in shares of major copper mining companies globally.