Copper price slumps into bear market amid tariff fears

Copper prices fell for a third straight day on Tuesday, translating to a 20% decline from their highs in late March and marking an official entry into a bear market, as US tariffs stoked fears of a recession.

A 20% drop from a recent peak is typically defined as entering a bear market.

Investors have been selling the metal since Thursday, as tariffs fueled concerns over a global trade war and a potential economic slowdown.

On the COMEX, copper for May delivery fell to $4.156 per lb. ($9,143/tonne) in morning trade—the biggest three-day loss on record, according to data compiled by Bloomberg.

“Metals are under significant pressure from dampened sentiment, as the world braces for a possible recession and heightened geopolitical tensions that threaten demand,” Sabrin Chowdhury, head of commodities at BMI, a Fitch Solutions unit, said in a note.

“The strong likelihood of a severe downturn in metals demand in a full-blown trade war will keep metal prices under pressure in the coming weeks.”

Positive outlook

Despite losses driven by Trump tariffs, the head of Chile’s Antofagasta, Iván Arriagada, said AI and other emerging technologies could help offset declines in traditional consumption caused by economic weakness.

Speaking at the CESCO Copper Conference in Santiago, Arriagada said he expects copper supplies—essential for construction and the green energy transition—to remain tight.

He also noted that President Donald Trump’s policies could ultimately create a more favorable environment for mining investment.

(With files from Bloomberg and Reuters)