How AI & Tariffs Have Helped Drive Copper's Summer Rally

While many metals and commodities are worth keeping an eye on right now, one that may warrant particular focus is copper.Key Takeaways: The price of spot copper saw a noticeable increase in July, rising 3.65% over the one month alone. This is happening due to a slew of favorable factors, including uncertain copper tariffs, AI’s effect on energy infrastructure, and more. Sprott offers straightforward access to the copper mining industry through the Sprott Copper Miners ETF (COPP). To start with, copper itself had a fairly strong performance in July. As Jacob White, CFA, director, ETF product management, Sprott Asset Management noted, the price of spot copper was up 3.65% over the past month, as of July 31, 2026. Year-to-date, the price of the red metal is up 11.10%, as of the same date. Advisors and investors are probably wondering why copper has been doing so well as of late. In the Sprott insights piece, White highlighted a slew of different factors backing spot copper’s price momentum. Among these factors, two in particular may stand out as a surprise to some: tariffs and artificial intelligence. See More: Supply & Contracting Drive Uranium’s Long-Term Fundamentals For tariffs, White explained how confusion over copper tariffs altered global trade for the metal. The United States had imposed a 50% tariff on semi-finished copper products, but did not initially adopt a recommendation from the U.S. Commerce Department for refined copper tariffs. This left many in the market scratching their heads over how refined copper was going to be taxed — if at all — when it was imported to the United States. Because of these doubts, companies were incentivized to transport refined copper into the U.S. before potential tariffs would go into effect. As a result, White noted that over 200,000 metric tons of refined copper reached U.S. ports in July. White said that this marked the largest monthly inflow, according to data that extends back to 2014. See More: Looking at Gold? Active ETFs Can Ride the RallyAI's Role to Play in the Copper TradeWhile refined copper was already being shipped into the U.S. at scale, structural demand for the metal is continuing to scale up. Artificial intelligence has obviously been a significant market theme as of late, but as White pointed out, the narrative is shifting from a need for hardware towards a need for stronger electrical infrastructure. Of course, copper plays a key role in manufacturing electrical infrastructure, given its multitude of industrial applications. Put together, the current picture for copper is quite appealing. Not only is the price of the metal doing well, but refined copper is moving to the United States en masse, and AI will continue to be a long-term driver of demand for the metal. These developments could bode well for the Sprott Copper Miners ETF (COPP). COPP is a fund from the Sprott team that provides exposure to both copper miners and physical copper itself. For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.DisclosuresAn investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below. Past performance is no guarantee of future results. One cannot invest directly in an index. Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance. Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi. Exchange Traded Funds (ETFs): SETM, LITP, URNM, URNJ, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL Physical Bullion Funds: PHYS, PSLV, CEF, and SPPP. Gold and precious metals are referred to with terms of art like store of value, safe haven and safe asset. These terms should not be construed to guarantee any form of investment safety. While “safe” assets like gold, Treasuries, money market funds and cash generally do not carry a high risk of loss relative to other asset classes, any asset may lose value, which may involve the complete loss of invested principal.