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<Research>Citi: US 50% Tariff on Copper Reduces Import Demand; Int'l Copper Price Expected to Fall to US$8,800 per Ton in Next 3 Mths
US President Donald Trump said the US plans to impose a 50% tariff on copper imports, and US Commerce Secretary Howard Lutnick said the policy could go into effect in late July or ...
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<Research>Citi: US 50% Tariff on Copper Reduces Import Demand; Int'l Copper Price Expected to Fall to US$8,800 per Ton in Next 3 Mths
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US President Donald Trump said the US plans to impose a 50% tariff on copper imports, and US Commerce Secretary Howard Lutnick said the policy could go into effect in late July or 1 August, according to the research report issued by Citi Research. The broker expected the 50% tariff rate to be officially confirmed within a few weeks and implemented within 30 days.

Citi Research saw this news as a turning point for the copper market in 2025, as the impending tariff will abruptly close the window for copper imports into the US (which could last until the end of 2025). This would decrease the international (excluding US) copper price to US$8,800 per tonne over the next 3 months.

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However, the broker projected the New York Mercantile Exchange (COMEX)-London Metal Exchange (LME)'s carry trade to drop by 50% as US copper inventories increased significantly in recent months and major copper exporters may eventually negotiate exemptions at lower tariff rates.

Citi Research forecasted the opposite to happen, with a sharp reduction in US import demand, which will ease the tightness of physical copper in the international market.

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