Copper-linked ETFs rose sharply on Monday as the metal broke through $13,000 a metric ton for the first time. Investors rushed into funds related to miners and futures amid growing concerns that U.S. tariff policy is distorting global supply.
The Global X Copper Miners ETF (NYSE:COPX) and the United States Copper Index Fund (NYSE:CPER) each increased around 5% on Monday, reflecting a strong rally in copper prices on the London Metal Exchange. There, futures reached a record $13,187 a ton. Copper has now risen more than 20% since mid-November.
Tariffs Drive US Stockpiling
This latest increase is driven more by a renewed push to ship copper into the U.S. than by a sudden rise in demand from users, according to Bloomberg. Ongoing uncertainty regarding President Donald Trump‘s import tariff policy has pushed U.S. copper prices to consistently higher levels relative to global benchmarks. This situation has motivated traders to send more copper to American warehouses.
As a result, supply is tightening in other areas. The U.S. has about half of the global exchange inventories, even though it represents less than 10% of global demand. Meanwhile, stocks outside the U.S. have decreased sharply, leaving little room for supply shocks. London copper spreads remain in backwardation, indicating tightness in the near-term market, Bloomberg reported.
Supply Shocks & Miner Disruptions
For ETF investors, the rally has resulted in significant gains across both price-linked and equity-based copper investments. CPER, which tracks copper futures, benefits directly from the speculation boosting prices, while COPX has risen as supply disruptions improve miners’ pricing power.
These disruptions are increasing. A strike at Chile’s Mantoverde mine, a deadly incident at Indonesia’s second-largest copper mine, and flooding at an underground operation in the Democratic Republic of Congo have all heightened worries about a market with limited spare capacity. Years of underinvestment in new mines have intensified these fears, even as demand for copper grows due to its key role in data centers, electric vehicles, and energy-transition infrastructure.
The Political Risk Factor
However, analysts cited by Bloomberg warn that this rally carries political risks. UBS estimates that the global refined copper market was in surplus in 2025, arguing that inventory flows driven by tariffs have exaggerated the tightness rather than reflecting actual shortages. Trump previously initiated a similar surge in imports before suddenly exempting refined copper from tariffs in mid-2025, which caused prices to decline.
For now, investors appear willing to maintain momentum. But for copper ETFs, the next trigger may come not from a mine or a smelter, but from Washington.
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