Copper futures in the United States advanced towards the $5.1 per pound threshold on Friday, nearing historic peaks. They were also trading at unprecedented premiums to the London Metal Exchange (LME) futures, surpassing $0.5 per pound. This dynamic is largely attributed to potential tariffs on copper, as President Trump signed an executive order initiating a review of copper imports, following his earlier statements to Congress about imposing such tariffs. Implementing these tariffs could heighten reliance on domestic production, where capacity is restricted to just two primary smelters, given that the US sources nearly half of its copper externally. Concurrently, demand from China, the largest consumer, was bolstered by an uptick in manufacturing activities and the government's commitment to increased deficit spending. Additionally, shifts in metal trades to leverage global contract spreads have resulted in the Yangshan Copper Premium—an indicator of the premium on LME contracts for importing physical copper into China—more than doubling since early March, reaching $70 per tonne.