Well, it’s happening again — U.S. tariffs are back, and this time, they’re supercharging copper prices. Thanks to new trade policies under Donald Trump’s second term, copper is having a historic moment. After rallying over 15% so far in March, copper futures prices settled at their record highs yesterday.
The metal’s already tight supply just got squeezed even harder, and investors seem to be piling in fast. If you’ve been watching from the sidelines, you’re probably wondering: Is this just a short-term spike — or the start of a multi-year run? And more importantly, should you be buying copper stocks right now?
In this article, let’s unpack what’s really behind copper’s recent surge — and which Canadian copper stocks could benefit most.
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Why copper prices are rallying
At the heart of copper’s latest surge is a policy shift that’s sending shockwaves through global trade. On March 26, President Trump signed a proclamation to slap a 25% tariff on all imported automobiles and many auto parts starting April 3. While this may sound like a move targeted only at the auto industry, it’s got much broader implications — especially for metals like copper.
If you don’t know it already, modern vehicles, especially electric ones, are packed with copper. Everything from the wiring harness to motors and battery connectors relies on it. So, when tariffs hit imported vehicles and parts, automakers — especially in Asia and Europe — may ramp up local production in North America to dodge the fees. That shift could massively increase domestic demand for copper, pushing prices higher.
On top of that, the threat of retaliatory tariffs and an April 2nd deadline for trade negotiations with key U.S. allies has created panic in global supply chains. Investors are betting that trade frictions will tighten copper availability even further — and they’re piling in fast. In addition to these fundamentals, it’s no wonder copper futures just hit record highs.
Are Canadian copper stocks a buy now?
If Trump’s proposed auto tariffs — and other potential import duties — kick in starting in early April, we could see copper prices push even higher. After all, tariffs on vehicles and parts would likely supercharge demand for domestically sourced copper.
But here’s the catch: Trump has a history of using tariff threats as bargaining chips. That means, in the short term, copper prices may remain highly volatile — and predicting where they’ll go next is nearly impossible.
That said, the long-term case for copper is rock solid. The global push toward electrification continues to grow, and copper is at the heart of it all. Think electric vehicles, solar panels, wind turbines, data centres, and even everyday electronics — all of them rely heavily on copper wiring and components. So, while prices may zig-zag in the short term, the long-term trend still points upward.
That’s exactly why Teck Resources (TSX: TECK.B) could be one of the best Canadian copper stocks to consider right now. I own Teck stock myself, and I believe it’s well-positioned for the years ahead. Teck shares are currently trading at $57.33 with a market cap of $29 billion, and it offers a 0.9% dividend yield.
Despite recent market weakness, Teck delivered record annual copper production in 2024, boosted by strong output from its Quebrada Blanca mine in Chile. The company returned $1.8 billion to shareholders last year and remains focused on ramping up copper output through 2025.
In short, while Teck stock may remain choppy in the near term — much like copper prices — its long-term investors could see solid returns ahead.
