Copper Pulls Back From Record as Washington Rethinks Import Tariff

Copper has retreated from an all-time peak after reports that the White House is reconsidering a 15% tariff on refined copper imports that had been expected to take effect January 1, 2027, with a possible step up to 30% in 2028. London Metal Exchange copper fell more than 3% to roughly $14,329.50 a ton on the news, after setting records above $14,600 earlier in the month.

The rally that preceded the pullback was built on two things: a structural mismatch between constrained mine supply and demand from data centers, grid buildout and renewable equipment, and a near-term squeeze caused by refined metal being shipped toward the United States to capture pre-tariff pricing. Removing or softening the tariff would unwind part of that second effect.

Freeport-McMoRan has been the most direct equity expression of the trade. The stock is up roughly 44% this year but fell about 7% as copper reversed, and Bernstein lowered its price target to $47 from $50 on September 9. With no formal tariff decision announced, producers face a policy outcome that cuts both ways for realized prices and volumes.