If nothing else, Trump’s latest move is a reminder of just how volatile commodity markets can be. For businesses that rely on copper, sudden price swings like this can crush margins overnight—unless they have a strong risk management and hedging strategy in place. The announcement of a 25% tariff on imported copper sent prices soaring, traders scrambling, and domestic producers celebrating. But what does this mean for businesses that rely on copper? And is this a long-term win for the U.S. market or just short-term chaos?

Copper Prices Surge

Right after the announcement, copper prices in the U.S. spiked over 5%—outpacing global prices. Traders braced for supply disruptions, and companies rushed to lock in purchases before the tariff kicked in. In fact, U.S. copper warehouses saw their biggest stockpile increase since 2021 as businesses tried to get ahead of the curve.

Winners and Losers

Domestic copper producers like Freeport-McMoRan are experiencing positive sentiment. Their stock prices surged as investors bet that American copper would now be in higher demand. If imports get more expensive, U.S. producers stand to benefit—at least in the short term.

But for industries that rely on copper—construction, automakers, electronics manufacturers—this is bad news. The cost of everything from wiring to car batteries is about to go up. That means higher prices for consumers and squeezed profit margins for businesses that can’t easily pass those costs on.

The Global Ripple Effect

Beyond the U.S., the tariffs could shake up international trade relationships. Top copper-exporting countries like Chile, Peru, and Canada won’t be thrilled about the move, and there’s a risk of retaliation. If that happens, American businesses relying on other metals and commodities from these regions could feel the heat.

What’s Next?

Some analysts think the tariff could lead to supply shortages and prolonged price hikes, while others believe domestic production will ramp up and eventually balance things out. Either way, businesses that depend on copper are in for a rough ride as they navigate these new costs.

For companies that haven’t thought seriously about hedging their commodity risk, this is a wake-up call. Price shocks like this don’t just affect big trading firms—they hit manufacturers, recyclers, and even construction businesses that rely on stable input costs. Companies that proactively hedge their risk can weather the storm, while those that don’t might find themselves at the mercy of market swings.

Right now, all eyes are on whether Trump’s move will genuinely strengthen the U.S. copper industry—or just make things more expensive across the board. But one thing is clear: volatility isn’t going anywhere, and businesses need a plan to manage it.