Copper ETFs Surge on Tariff Threats as US Prices Hit Record
- President Donald Trump said Tuesday the US would likely impose a 50% tariff on copper imports.
- Front-month copper futures on the COMEX jumped as much as 12.3%.
Copper-related ETFs surged Tuesday after President Donald Trump said the U.S. would likely impose a 50% tariff on copper imports, part of a broader effort to enact sweeping sectoral tariffs on industries like metals, pharmaceuticals and semiconductors.
The proposed tariffs are being considered under a Section 232 investigation of the Trade Expansion Act of 1962, which allows tariffs on the grounds of national security. The investigation is ongoing, but Trump’s comments suggest he plans to follow through with significant duties once it concludes.
CPER, Copper Futures Jump
Front-month copper futures on the COMEX jumped as much as 12.3% to a record $5.59 per pound, as traders priced in the prospect of tighter supply and sharply higher import costs.
The United States Copper Index Fund (CPER), which holds a mix of copper futures contracts, rallied 12% on the day. The fund, which has $215 million in assets, is now up 35% year to date.
Meanwhile, the Global X Copper Miners ETF (COPX), the largest copper-related ETF with $2 billion in assets, rose a more modest 1%. That fund, which tracks a global portfolio of copper producers, is up 21% in 2025.
COPX’s muted reaction may stem from its limited direct exposure to the U.S. copper market. According to Global X, only about 11% of the fund’s holdings are tied to U.S.-based companies. That means many of its holdings could be negatively impacted by the tariffs when exporting into the U.S., even if copper prices rise domestically.
The U.S. typically imports between one-third and one-half of its copper consumption each year. A 50% tariff would make those imports significantly more expensive. But because domestic mine production takes time to ramp up, copper consumers in the U.S. may be forced to continue relying on foreign supply, just at much higher prices.
Global Prices Vary
Outside the U.S., copper prices haven’t reached the same extremes. Copper traded on the London Metal Exchange (LME) is currently at $9,890 per metric ton, or about $4.50 per pound—roughly a 20% discount to COMEX prices.
LME copper prices last hit record highs in 2021 and have been mostly range-bound since. If tariffs are implemented as proposed, the gap between U.S. and global copper prices could grow even more severe.
