Recently, U.S. President Trump signed an executive order announcing a 25% tariff on all imported steel and aluminum, further increasing market uncertainty. Trump also hinted that future tariffs could be imposed on key industries such as copper, pharmaceuticals, and semiconductors, although specific details have yet to be disclosed. This announcement quickly triggered panic in the futures market, especially in the copper market.
On February 10th, Eastern Time, Trump's tariff policy caused the premium on U.S. COMEX copper futures to soar rapidly to $920 per ton, a record high. This price was significantly higher than the $558 recorded last Friday, demonstrating investors' strong reaction to the tariff policy.
Since Trump's election, the price of U.S. copper has consistently held a substantial premium over the London Metal Exchange (LME) copper prices. The premium on COMEX copper futures has fluctuated between $250 and $500, but with the implementation of Trump's tariff policy, this premium has expanded dramatically.
Benchmark Minerals Intelligence stated that this premium reflects the market's expectation of a 10.5% tariff on copper by Trump. Previously, the highest premium between COMEX and LME copper occurred in May 2024, when the COMEX copper price once reached an all-time high of $5.1985 per pound, with the premium peaking at $655 per ton.
