Copper & Aluminum: Tariffs, Volatility, and What Comes Next The copper and aluminum markets have been highly volatile, driven by tariff concerns. Last week, President Trump proposed a 25% tariff on steel and aluminum imports, sparking speculation that copper could be next. Markets reacted instantly — U.S. copper futures on Comex surged to a record $920 per ton premium over LME prices, while aluminum’s Midwest premium also spiked as traders rushed to secure supplies. Why Are Prices Moving? The key driver isn’t demand — it’s fear. The U.S. imports 45% of its copper and relies heavily on foreign aluminum. If tariffs are enforced, import costs will rise, making metals more expensive domestically. Traders are pricing in potential shortages, driving U.S. prices higher than global markets. The chart above shows how the market reacted to tariffs during President Trump’s first term in 1H’2018: prices spiked sharply in mid-April, reflecting panic-driven buying, supply concerns, and a g...