Copper Stocks Surge as Trump Signals New Tariffs on Imports

US President Donald Trump Moves Closer to Imposing Copper Tariffs

Copper stocks rallied on March 26 as US President Donald Trump indicated that tariffs on copper imports could be imposed within weeks, accelerating the timeline previously expected. This development follows the ongoing national security probe into copper imports, triggering a sharp rise in global copper prices and increased investor interest in key copper-producing companies.

In India, shares of major copper firms, including Hindustan Copper, Hindalco Industries, and Vedanta, gained in early trade as markets factored in the potential shift in global copper supply chains.

Copper Prices Reach Record Levels on Supply Disruptions

New York Copper Hits All-Time High

Copper futures on the New York Mercantile Exchange surged 3.1% to a record $5.3740 per pound before stabilizing around $5.3005 per pound. The rally was driven by concerns that new US trade policies could further strain global copper supply, which is already experiencing tight inventories due to supply disruptions in key producing regions.

Indian Copper Stocks React Positively

• Hindustan Copper shares gained 1.3% to ₹232 during early trade.

• Hindalco Industries rose 0.6% to ₹697.8, reflecting strong investor sentiment.

• Vedanta saw an increase of 1.6% to ₹468.4, as investors anticipated potential supply chain shifts benefiting Indian copper firms.

Analysts noted that copper’s bullish momentum remains intact, driven by a mix of supply shortages, geopolitical trade concerns, and increasing demand from the electric vehicle (EV) and renewable energy sectors.

Trump Initiates National Security Investigation Under Section 232

White House Moves to Tighten Control Over Copper Imports

In February 2025, President Trump directed Commerce Secretary Howard Lutnick to launch a national security investigation under Section 232 of the Trade Expansion Act of 1962. This law was previously used during Trump’s first term to impose 25% tariffs on steel and aluminum imports, sparking global trade disputes.

• The investigation was initially expected to take several months, but reports suggest that its findings may now be presented ahead of schedule, accelerating the timeline for potential tariffs.

• White House Trade Adviser Peter Navarro stated that the probe would be completed “in Trump time”, signaling a swift and decisive policy move.

US Targets China’s Dominance in Copper Markets

Navarro and other Trump administration officials have accused China of using state subsidies and overcapacity to gain control over global copper production, mirroring previous concerns regarding the steel and aluminum industries.

• China’s dominance in global copper refining and production has long been a concern for the US, with officials arguing that the Asian superpower could manipulate global supply chains to its advantage.

• Trump’s administration has signaled that new tariffs could serve as a countermeasure to limit China’s market influence, potentially shifting demand toward alternative copper suppliers.

Copper’s Bullish Momentum Supported by Persistent Supply Constraints

Global Supply Disruptions Drive Price Strength

Copper prices have remained on an upward trajectory due to supply shortages in major mining regions, particularly in Chile and Peru, the world’s largest producers.

• Labor strikes, logistical challenges, and declining ore grades have contributed to tight global inventories, further exacerbating copper supply constraints.

• Tata Mutual Fund analysts noted that copper remains in a strong uptrend, with bullish sentiment expected to continue due to limited production growth and rising industrial demand.

Volatility in Industrial Metal Markets Due to Trump’s Tariff Plans

• The announcement of potential 25% tariffs on automobiles and semiconductor chips added further volatility to industrial metal markets, including copper.

• While copper prices remain bullish, analysts caution that demand patterns could shift depending on how global markets react to changing trade policies.

Global Trade Implications: US Allies Seek Exemptions

Canada, Mexico, and the EU Brace for Economic Fallout

US trade partners, including Canada, Mexico, and the European Union, have been lobbying for exemptions from potential copper tariffs. However, President Trump has indicated that securing exemptions will be challenging, reinforcing his administration’s hardline stance on economic protectionism.

• Trump commented, “I know there are some exceptions, and it’s an ongoing discussion, but not too many, not too many exceptions.”

• The move aligns with Trump’s broader trade strategy of reshaping global supply chains and reducing dependence on foreign imports.

Shifts in Global Copper Supply Chains Could Benefit Indian Producers

• If the US imposes tariffs on Chinese and Latin American copper imports, manufacturers may turn to alternative suppliers, including Indian copper firms.

• India’s leading copper producers, such as Hindustan Copper and Vedanta, could see an uptick in exports if US restrictions limit China’s role in global copper trade.

Copper Stocks Remain in Focus

Copper Stocks Poised for Further Gains

With strong price momentum and geopolitical uncertainty supporting higher copper valuations, analysts expect continued investor interest in copper-related stocks.

• Hindustan Copper, Hindalco Industries, and Vedanta remain key beneficiaries of rising copper prices and shifting global trade dynamics.

• Traders and investors are closely monitoring US tariff developments, as any confirmation of tariffs could lead to further price surges in copper stocks.