The U.S. copper market experienced a notable price increase following the Trump administration?s announcement of a 50% tariff on copper import

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The U.S. copper market experienced a notable price increase following the Trump administration’s announcement of a 50% tariff on copper imports. The proposed measure, introduced during a Cabinet meeting on July 9, marked a key development in ongoing efforts to support domestic production of critical industrial materials. Copper futures responded by rising more than 10% overnight, reaching a new all-time high of US$5.682 per pound. According to The Guardian on June 9, the intraday peak touched US$5.8955, reflecting market adjustments to anticipated changes in U.S. supply dynamics. In contrast, global copper benchmarks saw slight declines as international markets assessed the potential implications for global trade flows.

Copper futures in the United States reacted swiftly, climbing more than 10% overnight to an all-time high of US$5.682 per pound. The Guardian article mentioned that the metal briefly spiked to US$5.8955 intraday on July 8, its sharpest single-day surge since 1989. The record-setting price movement came in response to both the tariff announcement and market anticipation that domestic copper supply would tighten rapidly. Meanwhile, prices on the London Metal Exchange fell by as much as 2.4%, reflecting fears that reduced U.S. demand could soften global trade.

According to a July 9 report from Yahoo Finance, analysts said U.S. copper prices reached a 25% premium over global benchmarks. JPMorgan noted that importers had rushed to secure supply, with copper shipments into the U.S. over the past six months approaching a year’s worth of typical volume. “The surging demand for U.S. copper ahead of the looming tariffs has pushed domestic prices to a 25% premium over copper trading on the London Metal Exchange (LME),” wrote Adam Turnquist, chief technical strategist at LPL Financial.

A report from Ahead of the Herd on July 14 described the tariff as an attempt to stimulate domestic smelting and refining—two major bottlenecks in the U.S. copper supply chain. The report noted that the U.S. only operated two smelters as of mid-2025, compared to China’s approximately 200. Though the U.S. has ample copper reserves, refining and production remain insufficient to meet industrial demand, which spans sectors from automotive and construction to renewable energy.

Structural Constraints Highlight U.S. Import Dependence

In comments to BNN Bloomberg, Red Cloud Securities commodity strategist Ken Hoffman explained that the price increase was driven not only by policy but by structural demand. “You have every military in the world trying to increase budgets… and you’ve just added gas to the fire saying we’re going to put these silly tariffs on copper,” Hoffman said, adding that a declining U.S. dollar, down about 15% in 2025, exacerbated the cost of metal imports.

Copper’s designation as a critical material in a February executive order intensified scrutiny of foreign dependence. The U.S. Geological Survey reported that more than 50% of U.S. refined copper consumption is met through imports, primarily from Chile, Canada, and Mexico. In 2024, the U.S. imported approximately 810,000 tonnes of refined copper while exporting just 60,000 tonnes.

Speaking to Forbes on July 8, Maximo Pacheco, chairman of Chilean copper producer Codelco, stated that the tariff's specifics remained unclear. Analysts from Bernstein noted ahead of the announcement that copper inventories were already shifting to U.S. warehouses in anticipation of the trade measures.

Domestic smelting capacity was widely viewed as inadequate. “The issue lies in the fact that we have three operating copper smelters in the entire country, which is pretty undersized for what we need,” said Eric Saderholm, co-founder of American Pacific Mining, in Yahoo Finance on July 9. Goldman Sachs added that the 50% tariff appeared to be more than a negotiating tactic. “We revise our baseline expectation to a 50% tariff on U.S. copper imports, up from 25% previously,” the firm stated.

While scrap copper has been considered as a short-term alternative, the U.S. currently lacks the smelting infrastructure to process its growing backlog of scrap material. According to Bloomberg, calls have emerged to restrict exports of scrap instead of imposing tariffs on refined imports, in hopes of bolstering the domestic copper circuit.

Industry leaders have also voiced concerns about downstream effects. A July CBS News article cited economist Ryan Young of the Competitive Enterprise Institute, who warned that tariffs could significantly increase costs for utilities, manufacturers, and construction firms. Daan de Jonge of Benchmark Mineral Intelligence emphasized broader inflationary risks, noting that “a 50% price hike will have inevitable ripple effects on the cost of new infrastructure, the cost of housing, the cost of fridges, cars, air conditioning.”

Copper demand has risen sharply in recent years, driven by clean energy adoption, data center construction, military rearmament, and electric vehicle (EV) proliferation. A 2024 report from Sprott indicated that copper demand from grid battery storage alone was expected to grow 557% by 2035. The International Energy Agency forecast copper needs from electricity networks would grow from 4.1 million tonnes in 2023 to 6.2 million tonnes by 2035. Meanwhile, global copper mine grades have continued to decline, down approximately 40% since 1991, according to BHP.

Although 2024 ended with a modest refined copper surplus of 301,000 tonnes, UBS forecasted that the market would swing into a deficit of over 200,000 tonnes in 2025. Tightening supply and increasing demand have created a landscape where price volatility is heightened and infrastructure stress is likely to mount.

As global copper demand continues to grow and trade policies reshape supply chains, several companies have positioned themselves to play a key role in meeting long-term market needs. With operations spanning exploration, development, and production, these firms are navigating the current landscape while contributing to the broader effort to strengthen domestic and regional copper supply. Below are three companies working within this evolving sector.

NevGold Corp.

NevGold Corp. (NAU:TSX.V; NAUFF:OTC; 5E50:FSE) has continued to report promising drill results from its Limousine Butte Project in Nevada, a property that may hold growing strategic importance as the U.S. seeks to strengthen domestic supplies of critical minerals.

In its most recent update, the company announced a high-grade oxide gold-antimony intercept of 9.68 g/t gold equivalent (AuEq) over 11.6 meters at the Resurrection Ridge zone, within a broader interval of 2.85 g/t AuEq over 60.3 meters. Other highlighted results include 1.55 g/t AuEq over 19.8 meters and 1.20 g/t AuEq over 33.9 meters. These oxide-dominant intercepts were calculated using metal prices of US$2,000/oz gold and US$35,000/tonne antimony.

The 2025 drill program is part of NevGold’s effort to define a maiden gold-antimony mineral resource estimate by year-end. The company has already released results from more than 20 drillholes and plans to release results from an additional 30, along with metallurgical testing and a re-assay of 50 historical holes. The near-surface nature of the mineralization at Resurrection Ridge, currently showing over 800 meters of strike length, could support a potential starter pit scenario.

Limousine Butte’s relevance increased after a March 2025 U.S. Executive Order elevated antimony to the list of critical minerals. With China, Russia, and Tajikistan dominating global supply — and with China recently imposing export restrictions — NevGold’s Nevada project has attracted attention as a potential domestic alternative. Analysts have emphasized the project's oxide nature and its location within Carlin-style geological settings as contributing to both exploration potential and development feasibility.

A June 2025 report by Ivan Lo of The Equedia Weekly Letter described NevGold as a rare junior with high-grade oxide results and critical mineral exposure. He noted the Limousine Butte system already spans over five kilometers and cited intercepts such as 2.46 g/t AuEq over 86.9 meters and 13.15 g/t AuEq over 3.1 meters as evidence of scale and grade. Lo also pointed to the presence of antimony as a distinguishing factor that could align the project with U.S. supply chain priorities.

Institutional backing has further supported the company’s advancement. NevGold completed a CA$6 million financing in May 2025 led by Clarus Securities. The deal was described as a sign of confidence from deep-pocketed investors with experience in early-stage mining opportunities. According to the company, it is fully financed to complete its 2025 exploration program, which includes a 5,000-meter reverse circulation drill campaign and metallurgical work on a 100-kilogram bulk sample.

NevGold's strategic investors include GoldMining Inc., which holds 28.3% of the company on an undiluted basis, and McEwen Mining Inc. The company said about 30% is held by management and insiders.

According to Refinitiv, these include Non-Executive Chairman Giulio T. Bonifacio with 4.56%, CEO Brandon Bonifacio with 3.46%, Independent Director Gregory French with 0.85%, and Independent Director Timothy Dyhr with 0.70%, Refinitiv said. About 10% is held by institutions, and the rest is in retail.

NevGold has 94.25 million outstanding shares and 57.25 million free-float traded shares. Its market cap is CA$28.33 million. Its 52-week trading range is CA$0.17 and CA$0.50 per share.

Coppernico Metals Inc. 

Coppernico Metals Inc. (COPR:TSX; CPPMF:OTCQB) is advancing exploration at its flagship Sombrero project in Peru, targeting copper-gold skarn and porphyry systems within the prolific Andahuaylas-Yauri mineral belt.

The company’s early 2025 channel sampling results from the Tipicancha target highlighted strong copper and silver values, including 22 meters of 0.65% copper and 0.77 g/t silver, with a higher-grade section of 10 meters grading 1.14% copper. According to Coppernico’s vice president of exploration, these results suggested proximity to a porphyry copper system at depth, supporting the broader geological thesis for the project.

Tipicancha is part of a growing pipeline of prospective zones within the Sombrero land package, which spans approximately 102,000 hectares. Recent mapping and sampling extended the surface alteration footprint at Tipicancha to about 2 kilometers by 400 meters. Geochemical analysis identified elevated levels of molybdenum, arsenic, antimony, and tin, elements often associated with the deeper portions of epithermal systems, pointing to a potential transition zone from epithermal to porphyry-style mineralization. Additional targets such as Macha Machay, Antapampa, and Fierrazo have also shown promise.

The Sombrero district lies within the northwestern extension of the Andahuaylas-Yauri belt, home to several Tier 1 copper mines including Las Bambas, Antapaccay, and Constancia. In terms of geology, scale, and mineralization style, Coppernico’s project bears similarities to these major operations. A Phase 1 drill program completed earlier in 2025 confirmed copper-gold skarn mineralization in the Cascabamba area, with 8,233 meters of diamond drilling across 20 holes. The company noted that mineralization extended beyond currently permitted zones, reinforcing the need for expanded exploration access.

To support further drilling, Coppernico has applied for an expanded permit that would allow up to 200 drill holes, significantly more than the 49 originally approved. The company has also indicated it plans to add additional drill rigs upon receipt of the new permit. Phase two drilling is expected to focus on refining the dimensions of mineralized zones at Tipicancha and other high-priority targets. Meanwhile, Coppernico continues evaluating additional opportunities throughout the Americas to diversify its portfolio and mitigate single-asset risk.

Analyst coverage has noted the project's scale and analogies to nearby major copper mines. In a May report, 3L Capital’s Steven Therrien described Sombrero as having "large copper skarn deposit potential," citing Tipicancha’s results and historical intercepts at the Fierrazo target, which included 90.4 meters of 0.50% copper and 116 meters of 0.42% copper. Other prospects, including Nioc and Chumpi, have returned strong historical sample results, with some grab samples from Nioc showing copper grades exceeding 4% alongside notable gold values.

According to Refinitiv, six strategic entities own 15.08% of Coppernico Metals. Teck Resources Ltd. (TECK:TSX; TECK:NYSE) with 9.9%, Newmont Corp. (NEM:NYSE) with 6.28%, Coppernico CEO Ivan Bebek with 3.45% and other Directors and Officers with 1.6%. Institutional ownership amounts to 17.75%,  and the rest is in retail.

Coppernico has 177.3 million (177.3M) outstanding shares and 150.56M free float traded shares. Its market cap is CA$22 million. Its 52-week range is CA$0.115–0.54 per share.

Hercules Metals Corp. 

Hercules Metals Corp. (BADEF:OTCMKTS; BIG:TSXV) is advancing its flagship Hercules Copper Project in western Idaho, a historic mining district positioned within one of the most prospective belts in the western United States.

The project covers approximately 4,246 hectares and includes the historical Hercules Adit, which was part of a larger trend mined for high-grade copper and gold in the early 1900s. The company is now leveraging modern exploration methods to define large-scale porphyry and skarn-style systems across multiple zones of mineralization.

The Hercules Copper Project is road-accessible and located within an emerging copper-gold corridor. Hercules Metals has identified over 10 kilometers of prospective strike length through mapping, rock sampling, and geophysical surveys. Historic work outlined high-grade zones including 5.5% copper and 1.4 g/t gold over 3.0 meters, with modern channel sampling and drilling confirming continuity and scale. These results, combined with multi-kilometer magnetic and IP anomalies, suggest the presence of a significant mineralized system at depth.

Initial drilling completed in 2023 and early 2024 returned encouraging results from shallow depths. Step-out holes expanded the mineralized footprint at multiple targets, with additional high-priority areas—including Grade Creek, Grade Ridge, and the Hercules Adit Zone—remaining largely untested. The company’s 2024 exploration strategy includes over 5,000 meters of diamond drilling, designed to further delineate the copper-gold system and potentially support a maiden resource estimate.

Hercules Metals has also benefited from growing interest in U.S. domestic copper supply amid global electrification and critical mineral security concerns. The company emphasizes its alignment with U.S. strategic priorities, including the development of infrastructure-grade copper in a low-risk jurisdiction. Hercules believes its project may support both scale and grade necessary to supply clean energy and grid infrastructure demands.

The project’s strong infrastructure, situated near roads, power, and a skilled workforce,adds to its development appeal. Additionally, Hercules holds 100% ownership of the project, offering operational flexibility and strategic optionality. The company is also pursuing partnerships and evaluating financing opportunities to accelerate exploration and resource development.

According to Refinitiv, 3.97% of Hercules Metals is owned by Institutions. Of those, Jupiter Asset Management Ltd owns the most with 2.76%, Crescat Capital owns 1.07%. Strategic investor, Barrick Gold Corp., owns 13.26%. 

Management and Insiders hold 4.55%. CEO Chris Paul holds the most with 3.46% and Director Peter Simeon holds 1.07%.

Hercules Metals has a market cap of US$139.042M and a 52 week range of US$0.4600 - 1.6200.