Copper contracts (COPPER) are experiencing a slight correction today (-0.5%), but the price dynamics of this industrial metal (+11.3% in contracts since the beginning of the year) place it almost on par with gold, which has been reaching new highs (+14.75% since the beginning of the year). On the New York exchange, the price of copper rose to $5 per pound, but further increases will depend on the outcome of tariff issues and internal factors in key economies (China).
COPPER follows GOLD’s rally in 2025. Source: xStation5
Tariffs in Play
The main factor driving recent copper price increases is not an explosion in demand, but geopolitical factors. In February 2025, under the direction of President Trump, an investigation was launched regarding the impact of copper imports to the U.S. on the country’s economic security. The U.S. dependency on imported copper (45% of copper used) has sparked speculation about including the metal in Trump’s trade policy. While the 25% tariffs on metals (steel and aluminum) currently do not apply to copper, U.S. Secretary of Commerce H. Lutnick has stated that it’s only a matter of time before the metal is included on the list.
Will Demand Sustain the Price Increase?
The future of copper remains uncertain, given mixed prospects for economic growth. The metal itself acts as a barometer of economic activity, especially in sectors like automotive, construction, and electronics. However, industry—especially in Europe—still has a long way to go before returning to form. There are also issues with China, the world’s largest copper importer, which plays a crucial role in shaping the price of the metal. Weak consumer demand and the negative impact of tariffs on economic growth may cause the foundations of the current trend to weaken.
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