Copper Soars to Record High as Trump Proposes 50% Tariff on Imports

Key Takeaways:
*President Trump proposed an additional 50% tariff on imported copper to boost domestic production, jolting financial markets.

*The announcement sent copper prices soaring over 10% to $5.67/lb, an all-time high, as traders reacted to potential supply disruptions and increased costs.

Market Summary:

In a televised cabinet session yesterday, President Trump jolted markets once again by proposing an additional 50% tariff on imported copper, a move aimed at incentivizing domestic production. While the announcement triggered immediate market reaction, the lack of clarity on the effective date has left investors uncertain about the next steps.

Copper prices surged more than 10% in the wake of the announcement, climbing to around $5.67 per pound as of writing—marking an all-time high for the industrial metal. The U.S., which imported approximately 800,000 metric tons of copper in 2024—roughly half of its total consumption—is likely seeking to bolster domestic output in the face of growing supply concerns and geopolitical risks.

Key trading partners including Canada, Chile, and Mexico—major copper exporters to the U.S.—are expected to bear the brunt of the proposed tariff, which could disrupt established supply chains and drive up costs for industries reliant on the metal.

While the White House has yet to provide a timeline for implementation, the prospect of elevated tariffs has added fresh volatility to the commodities market and raised concerns over potential retaliatory measures from affected nations.

Technical Analysis

Copper, H4

Copper prices surged more than 10% in the last session, briefly retreating on profit-taking but remaining firmly near record highs—signaling continued bullish momentum for the industrial metal. The rally leaves copper within striking distance of the next key psychological resistance level at $6.00 per pound. A decisive break above this threshold could reinforce the bullish trend and open the door for further upside.

However, market participants remain cautious as the sharp gains may invite profit-taking, potentially triggering a technical correction in the near term before any sustained move higher.

Momentum indicators continue to support the bullish narrative. The Relative Strength Index (RSI) has entered overbought territory, reflecting robust upward momentum, while the MACD edged higher in the last session, aligning with the bullish price action.

The copper market remains underpinned by supply concerns and the recent tariff announcement from the Trump administration, which could further tighten global supply chains and fuel speculative buying.

Resistance levels: 5.8645, 6.110
Support levels: 5.4750, 5.2590

XAGUSD, H4

Silver prices are hovering near record highs around the $37.00 mark, with the market awaiting fresh bullish momentum to propel the metal to new peaks. An ascending triangle pattern has taken shape on the chart, typically a bullish formation that signals a higher likelihood of an upside breakout.

While the price action points to a bullish bias, momentum indicators present a more cautious picture. The Relative Strength Index (RSI) is treading near the midpoint, offering a neutral signal, while the MACD has drifted towards the zero line from above, suggesting that upward momentum is beginning to fade.

The divergence between price structure and momentum signals hints at the possibility of short-term consolidation before any decisive breakout. A sustained move above the $37.00 level could reignite buying interest, while failure to do so may expose silver to a technical pullback.

Resistance levels: 37.00, 39.40
Support levels: 35.50, 33.85