Thanks to new trade policies under Trump’s potential second term, copper is experiencing a historic moment. After surging over 15% in March, copper futures hit an all-time high yesterday. With already tight supply facing further constraints, investors appear to be rushing in. Many may wonder: Is this just a short-term spike, or the beginning of a multi-year rally? More importantly, should investors buy copper mining stocks now? And which Canadian copper stocks stand to benefit the most?
At the core of this copper price surge is a dramatic shift in global trade policy. On March 26, President Trump signed a proclamation imposing a 25% tariff on all imported vehicles and most auto parts, effective April 3. While this appears to target only the automotive industry, its impact extends much further—particularly to metals like copper.
Modern vehicles, especially electric ones, contain significant amounts of copper. From wiring harnesses to motors and battery connectors, nearly every component relies on copper. As a result, when tariffs hit imported vehicles and parts, automakers—particularly those from Asia and Europe—may ramp up local production in North America to avoid the duties. This shift could substantially increase regional copper demand, driving prices even higher. Against this backdrop, it’s no surprise that copper futures have reached record highs.
The long-term outlook for copper remains strong. Global electrification continues to advance, with copper playing a central role. Whether in electric vehicles, solar panels, wind turbines, data centers, or everyday electronics, all heavily depend on copper wiring and components. Thus, while short-term prices may fluctuate, the long-term trend remains upward.
This is why Teck Resources (TSX: TECK.B) stands out as one of the top Canadian copper stocks to consider. Currently trading at $57.33 with a market cap of $29 billion, Teck offers a 0.9% dividend yield. Despite recent market weakness, the company achieved record copper production in 2024 and plans to further increase output by 2025. While Teck’s stock may be volatile in the short term, mirroring copper price movements, long-term investors could see solid returns.
