The mining sector is witnessing a significant shift, driven by a confluence of geopolitical factors and long-term market trends, with copper emerging as a focal point. The Trump administration’s recent announcement of a 50% tariff on copper imports, effective August 1, has sent ripples through the market, sparking a surge in copper futures prices and raising questions about potential supply-demand imbalances. This development is not just a short-term blip but could have far-reaching implications for copper miners and investors alike.
The tariff, aimed at reducing reliance on copper imports and revitalizing domestic mining, has already led to a 35% year-to-date surge in copper prices. This price increase is a boon for copper miners, who are more leveraged to copper prices than other players in the sector. Companies like Freeport McMoRan (FCX), the largest U.S. copper producer, stand to gain significantly from this policy shift. The U.S. Geological Survey (USGS) reports that despite being the world’s fifth-largest copper producer, the U.S. still imports 45% of its copper consumption, primarily from Canada, Chile, and Peru. The tariff could thus incentivize domestic production, with projects like Ivanhoe Electric’s planned Arizona mine, set to be completed by 2028, poised to benefit.
Beyond the immediate impact of tariffs, copper’s long-term prospects appear robust. The metal plays a crucial role in electricity generation, manufacturing, and technology—sectors that are expected to grow, providing stability throughout economic cycles. The International Copper Association highlights copper’s essential use in everyday objects like cars, laptops, and smartphones, as well as in next-gen infrastructure such as electric vehicles and renewable energy storage. This widespread application has kept demand relatively stable, contributing to a steady increase in copper prices as supply imbalances persist. These imbalances could deepen in the coming years as manufacturers and other copper users adjust their supply chains in response to the new tariffs.
Investors are taking notice, with copper ETFs seeing a surge in popularity. The United States Copper Index Fund (CPER), the only ETF consisting of copper futures contracts, has gained over 38% in 2025, reflecting both the rally in copper prices and growing investor interest in inflation-sensitive assets. While there is no U.S. physical copper ETF yet, Sprott’s Physical Copper Trust, currently listed in Canada, has filed for dual listing on the NYSE, which could provide another avenue for investors.
Copper mining ETFs offer exposure to the metal through various strategies. The Global X Copper Miners ETF (COPX), the oldest and largest copper miner ETF, has seen significant inflows, with assets nearing $2 billion. COPX includes companies with substantial revenue from copper mining, weighted by free float market capitalization, with a maximum weight of 4.75%. Its top holdings include First Quantum Minerals, Freeport-McMoRan, and Lundin Mining Corp. The iShares Copper and Metals Mining ETF (ICOP) follows a similar methodology but allows for higher individual company weights, up to 8%, making it slightly more top-heavy. Notably, ICOP includes Newmont Corp, a gold mining company with a significant market share in copper.
Sprott offers two copper miner ETFs: the Sprott Copper Miners ETF (COPP) and the Sprott Junior Copper Miners ETF (COPJ). COPP uniquely provides access to physical copper through the Sprott Physical Copper Trust, currently around 4% of the ETF’s weight. COPP’s weights differ significantly from its peers, with Freeport McMoRan comprising around 26% of the ETF, indicating higher exposure to the U.S. COPJ, on the other hand, focuses on mid-, small-, and micro-cap stocks, with Ivanhoe Electric as its second-largest holding.
Themes Copper Miners ETF (COPA), the newest in the group, has managed to outperform most of its peers despite its modest asset size. Known for its low expense ratios, COPA’s expense ratio is only 35 basis points, significantly lower than its peers. Leveraged ETFs, such as the USCF Daily Target 2X Copper Index Fund (CPXR), target twice the daily return of the SummerHaven Copper Index, offering investors a way to amplify their exposure to copper price movements.
This news could shape the development of the mining sector in several ways. First, the tariff could accelerate the development of domestic copper mining projects, reducing reliance on imports and potentially creating jobs and stimulating economic activity in the U.S. Second, the long-term demand for copper, driven by its essential role in