Copper Slides 4.5% After Record High on Tariff Delay Fears

Copper prices fell 4.48% to close at $14,169 on September 9. This decline followed a peak of $14,854 earlier in the session. The drop was triggered by reports that US refined copper tariffs may be delayed. The White House has not finalized its policy decision. Traders are reassessing their positions based on this new information.

The market had priced in a 15% tariff on refined copper starting in 2027. This expectation drove significant import activity into the United States. In the first half of 2026, the US imported approximately 885,000 metric tons of copper. COMEX inventories reached a record high of 675,000 metric tons by the end of August. This stockpiling tightened supplies in other markets like the LME.

White House Weighs Manufacturing Costs

The administration is balancing competing economic interests. Higher tariffs would support domestic mining and smelting industries. However, copper is a key input for manufacturing sectors. Industries such as power equipment, automobiles, and construction rely heavily on this metal. Rising copper prices would directly increase downstream production costs. The White House is concerned about the impact on affordability for consumers.

The US currently imports about half of its copper demand. It operates only two domestic copper smelters. A final decision on tariffs remains pending. The Department of Commerce has submitted recommendations to the President. No final announcement has been made. This uncertainty is the primary driver of recent market volatility.

Trade Flows and Inventory Shifts

Anticipated tariff changes altered global trade patterns. Traders shipped copper to the US in advance of potential cost increases. This created a noticeable price premium for US copper over international markets. If tariffs are delayed or cancelled, the incentive to stockpile will decrease. The price spread between COMEX and the LME may narrow. Large volumes of copper in US warehouses could potentially flow back to other markets.

This shift would impact the global spot supply structure. The return of these inventories could ease tightness in other regions. Market participants are monitoring the policy outcome closely. The direction of US trade policy remains the largest variable for copper prices. Future import decisions will dictate the flow of physical metal across borders.

Technical View and Price Support

The medium-to-long-term trend for copper remains bullish. Moving averages are aligned in a bullish pattern. However, short-term momentum has weakened. A long upper shadow on the price chart indicates selling pressure. Prices may consolidate in a range-bound market. Support is identified at the $14,000 to $14,100 level.

Resistance sits between $14,700 and $14,854. Traders are waiting for clarity on the tariff policy. The current price action reflects a pause in the upward trend. Market sentiment is cautious until the White House issues a final decision. The next move in copper prices will depend on regulatory updates. GN markets/commodities (en-US) notes that policy risks remain high for the sector.