Global Copper Traders Rush to Offload Shipments to China Ahead of Trump’s 50% Tariff Deadline

Global copper traders are rushing to offload shipments to Chinese buyers as a new 50% U.S. tariff on copper looms. President Donald Trump announced the tariff would take effect on August 1, aiming to boost domestic production across several industries. Although he did not clarify which specific copper products would be affected, the announcement has triggered a scramble among traders to find alternative markets.

Chinese Copper Demand Surges as Global Traders Redirect Shipments Before Tariff Deadline

China, the world’s top copper consumer, is now being targeted by sellers who originally intended to ship copper to the U.S. Offers to Chinese buyers have surged since late June, hitting their highest in months. A Chinese trader confirmed the trend, while another said they had received an urgent offer for 1,500 metric tons from South America, highlighting sellers’ eagerness to divert their shipments.

Traders who stockpiled and shipped copper to the U.S. in anticipation of the tariff now face a tight deadline. Only shipments already en route, particularly from Latin America, are likely to reach U.S. ports in time. With limited capacity and high shipping costs, some traders are redirecting copper to Europe or Asia, suggesting a broader global shift in copper flows, according to Benchmark Mineral Intelligence analyst Albert Mackenzie.

Copper Prices Dip as Surplus Shipments Flood Chinese Market Before Tariff Deadline

The influx of redirected copper is already impacting market dynamics in China. The Yangshan Copper Premium—a key indicator of what Chinese importers are willing to pay—dropped 5% to $62 per ton. This decline reflects the growing availability of copper outside the country as traders seek quick buyers before the tariff kicks in.

As a result of the uncertainty and oversupply, copper prices in China are under pressure. The most-traded copper contract on the Shanghai Futures Exchange fell for a fifth consecutive day, dropping 0.4% to 78,600 yuan ($10,952.87) per ton, marking its lowest level since late June. With thousands of tons now being redirected to China, the market may continue to feel downward pressure in the short term.