Copper prices climbed to a fresh record on the London Metal Exchange as distortions to trade flows due to concerns over potential U.S. tariffs collided with supply challenges at key mines worldwide.

In afternoon European trading on Tuesday, three-month copper futures rose 1.6% to $14,724.50 a metric ton after touching an intraday high of $14,779. The metal is up nearly 18% this year.

The rally has been building on expectations that copper demand will remain strong for years, fueled by spending on electricity grids, artificial-intelligence infrastructure, data centers, electric vehicles and other projects tied to the global energy transition.

But the more immediate force behind the latest gains is a tightening supply picture amid aging mines and other operational challenges to keeping global production growing.

Global copper-mine production declined 1.1% in the first half of 2026, according to preliminary figures released in August by the International Copper Study Group. Output fell sharply in several major producing countries, including Chile, Indonesia and the Democratic Republic of Congo.

The physical market has also been reshaped by expectations of U.S. tariffs.

Traders and merchants have been sending large volumes of refined copper into the U.S., where prices have traded at a premium amid the prospect of new import duties. That rush has reduced inventories available elsewhere, including stocks held in warehouses monitored by the LME.

The tariff concerns stem from a proclamation signed last year by President Trump that imposed a 50% levy on certain semi-finished copper products. Refined copper was left outside the initial tariff, while the Commerce Department was directed to examine whether the metal should also be subject to restrictions.

The department was expected to report its findings by June 30. That deadline has passed without a formal decision from the White House, leaving traders to position for the possibility that refined copper could eventually face a levy as well.

Analysts at Sucden Financial said copper could have room to rise further if prices remain above $14,400 a ton, although the speed of the recent advance leaves the market exposed to profit-taking, particularly if a stronger dollar weighs on commodities following U.S. inflation data.