300% surge in copper trading following Trump tariff threat

IG sees 300% surge in copper trading following Trump tariff threat, with most now going short

Copper trading on IG’s platform has surged by over 300% week-on-week, after Donald Trump announced a 50% tariff on US copper imports, due to take effect from 1 August 2025.

The news sent shockwaves through global metals markets, sparking a sharp uptick in trading volumes as investors reacted to fears of disrupted supply and slowing demand.

According to IG’s data, sentiment towards copper is becoming more cautious, with a growing number of traders now shorting copper amid expectations that prices will fall back.

Key week-on-week highlights from IG platform data:

Copper

• Number of copper trades up 302%
• Volume traded up 516%
• 69% of traders now shorting high grade copper
• This is a 48% increase in the percentage of shorters, signalling a sharp negative sentiment swing as traders predict the price surge may not last

Equity exposure

• Metals One saw the second-largest weekly increase in trades among UK-listed mining stocks
• Trades in Metals One up 130% week-on-week, as investors seek indirect exposure to the copper theme through junior miners

Chris Beauchamp, Chief Market Analyst at IG, said:

“Once seen as the go-to barometer for the global economy, copper has lost some of its predictive power – but the metal still has a lot to say about shifting market dynamics.

“What we’re seeing now is a clear divergence: high-grade copper traded in the US surged on the tariff news, while UK and LME prices barely moved. That widening gulf is a reflection of a changed global order, where regional pricing and policy risk increasingly pull markets in different directions.

“The initial surge in trading was driven by knee-jerk positioning, but sentiment is already cooling. Talk of harsher tariffs is reviving fears of a broader economic slowdown, and if that recession narrative takes hold again, copper prices could come under renewed pressure as demand expectations weaken.”