Trump’s Tariffs Send Copper to Record High – Are Platinum, Silver and Lithium Next?

The explosive move came after President Donald Trump confirmed a 50% tariff on Copper imports, set to take effect August 1.

“Copper is critical to America’s AI dominance, defence readiness and industrial leadership,” Trump posted on Truth Social. “This is our Golden Age – we will rebuild a DOMINANT Copper Industry.”

Markets responded instantly. U.S Copper futures jumped over 20% within minutes, catapulting the red metal into historic territory and setting the stage for what traders are calling one of the greatest wealth creation opportunities ever seen.

AI, Defence and Energy: Why Copper Is Now a Strategic Weapon

The timing of this policy shift is anything but accidental. Copper is the lifeblood of the 21st-century economy, powering everything from semiconductors, missiles, radar systems, electric vehicles, to AI data centers and lithium-ion batteries.

AI infrastructure alone is expected to drive $1.8 trillion in global investment by 2030. With Copper’s unmatched conductivity and scalability, it’s emerging as the irreplaceable metal behind the artificial intelligence revolution. Each hyperscale data center consumes up to 30,000 tons of Copper. As more nations race to dominate this space, demand is going vertical.

Trump’s recent announcement of a $3 trillion AI infrastructure pact with Gulf nations – Saudi Arabia, UAE, and Qatar – is pouring rocket fuel on the Copper trade. This alliance aims to build mega data centers, chip fabrication plants and robotics hubs across North America and the Middle East – all of which will require industrial metals at unprecedented scale.

Copper’s Breakout Is Only the Beginning of a Multi-Year Supercycle

Structural deficits are already in play. The International Energy Agency (IEA) warns of a looming 30% global Copper shortfall by 2035 with demand expected to jump from 27 million tonnes in 2024 to over 37 million by 2050.

Meanwhile, supply concentration poses a systemic risk. China controls 45% of global refining capacity. Chile, Peru and The Democratic Republic of the Congo (DRC) account for nearly half of all mined output.

In a world increasingly defined by trade warfare and resource nationalism, these chokepoints represent systemic vulnerabilities.

Is Inflation About to Return?

“Copper is the new CPI,” say analysts at JPMorgan.

Given its ubiquity in infrastructure, electronics, and manufacturing, rising Copper prices ripple across the economy – driving up costs for housing, transportation and energy. If prices remain elevated, central banks may be forced to rethink dovish monetary policy and postpone rate cuts.

Will Platinum, Silver, and Lithium Be Next?

According to analysts at GSC Commodity Intelligence – Platinum, Silver, and Lithium are the most likely candidates. All three face tightening supply, rising strategic demand and mounting geopolitical relevance. If Trump extends tariffs to these Commodities, a new wave of parabolic price moves could follow.

With the macro backdrop aligning—tight supply, exploding AI demand and a tariff-fuelled geopolitical squeeze – the setup for industrial metals is unlike anything in recent memory.

Copper’s record-breaking breakout may just be the beginning. For savvy traders the second half of 2025 could represent the most asymmetric opportunity in Commodities since the early 2000s.