(Kitco News) – The massive new tariff on U.S. copper imports has completely changed the price dynamics for one of the most important industrial materials in the world, according to Adam Turnquist, Chief Technical Strategist for LPL Financial.
Turnquist told Kitco News on Wednesday that the technical setup for copper has been reconfigured following President Trump’s surprise announcement of a 50% tariff on copper imports.
“Investors were caught off guard, as the market had been expecting a much lower tariff rate,” he said. “Commerce Secretary Howard Lutnick later stated the copper tariffs will be imposed later in July or August (presumably when they conclude their Sector 232 Investigation), shortening the time window to front-run the new import tax.”
“Copper’s 13% advance yesterday not only marked its largest single-day rally on record, but it also lifted prices to fresh record highs,” Turnquist noted. “The metal has subsequently pared some of the gains this morning but still remains above key support at $522.”
“The surging demand for U.S. copper ahead of the looming tariffs has pushed domestic prices to a +25% premium over copper trading at the London Metal Exchange (LME),” he added. “Furthermore, LME copper inventories have been significantly depleted, raising concerns about a global supply shortage outside the U.S.”
Turnquist said that rising copper prices could significantly impact copper-intensive sectors such as building construction, equipment manufacturing, electric vehicles, and electronic products. “The widespread use of copper might also fuel inflation concerns,” he warned.
Copper prices have risen from their earlier lows, but the industrial metal is still trading well off its all-time highs from Tuesday afternoon. Comex copper futures last traded at $5.521 per pound for a loss of 2.89% on the daily chart.
