Copper prices plunge as US tariff plans on refined metal stall

Copper prices and major mining stocks experienced a sharp decline following reports that the White House has delayed decisions regarding tariffs on refined copper imports. The uncertainty has unwound a significant speculative premium that had recently pushed copper to record highs.

Officials are reportedly weighing the potential benefits of encouraging domestic mining and refining against the risk of increased manufacturing costs for American businesses, particularly ahead of the November midterm elections. While the administration has previously implemented duties on semi-finished copper products, the decision on refined metal—such as cathodes and anodes—remains unresolved.

The market reaction was widespread. Copper futures on the COMEX fell as much as 5.4%, and benchmark prices on the London Metal Exchange also retreated. Major mining companies, including Freeport-McMoRan, Southern Copper, and Capstone Copper, saw their shares drop significantly.

In addition to the tariff uncertainty, market volatility was exacerbated by concerns over softening industrial demand in China, where August copper imports hit a six-year low. The combination of shifting US trade policy and cooling Chinese demand has created a volatile environment for the metal, which is critical for electronics, construction, and renewable energy infrastructure.