5 August 2026 – Last Monday, 25 US states filed a lawsuit against their own federal government. The case concerns the tariffs introduced only at the end of July under Section 301 of the US Trade Act. In doing so, the states are standing up for their SMEs. Copper prices exceed USD 14,000 per tonne, while LME and SHFE inventories have fallen drastically.
Copper Prices Exceed USD 14,000 per Tonne
The LME cash price for copper rose from USD 13,945 per tonne on 3 August to USD 14,195 on 4 August. Registered inventories fell from 244,025 tonnes to 238,350 tonnes, compared with 268,775 tonnes on 28 July. In May, inventories had still stood at more than 400,000 tonnes, representing a decline of over 40 per cent.
Strong US Demand for Copper
The main reason is strong demand for copper, particularly in the United States. The copper market there had expected US President Donald Trump to decide at the end of June whether to introduce import tariffs on refined copper. So far, however, no such decision has been made.
SHFE Inventories Have Collapsed Since March
SHFE inventories have fallen from a March peak of 433,458 tonnes to just 69,610 tonnes, indicating a tight domestic market. The supply of primary metal has declined, while the scrap metal market is under government scrutiny.
What happens next in the copper market is now likely to depend on a decision from the White House.
The Tariff Dispute Escalates: 25 States versus Washington
Last Monday, 25 US states filed a lawsuit against their own federal government. The case concerns the tariffs introduced only at the end of July under Section 301 of the US Trade Act: tariffs of 10 and 12.5 per cent respectively on imports from 60 trading partners.
The accusation made by the plaintiffs is more serious than any debate over tariff rates. The government is allegedly attempting to restore a tariff structure that has already failed in court by relying on a legally disputed interpretation of the Act.
The issue before the court is therefore no longer whether the rates are too high, but whether the President is legally entitled to impose them unilaterally at all.
Legal Uncertainty as a Burden in Its Own Right
For importers, the proceedings themselves are the problem. A final ruling is not expected before 2027 at the earliest. Until then, every company must calculate using tariff rates that could subsequently be declared invalid. Anyone entering into contracts covering several months is effectively calculating blind.
Who Defends Small and Medium Sized Enterprises in Europe?
Whether the tariffs are substantively justified is one question. Another is who is prepared to oppose them.
In the United States, the states are doing so, and they expressly justify their action by referring to the interests of their small and medium sized enterprises. Federalism is acting as a corrective there.
In the European Union, one searches in vain for such a corrective. No Member State is taking legal action against quotas, tariffs and levies that affect its own SMEs.
On the contrary, the Member States jointly approved the Commission’s trade defence measures. They are not the victims of Europe’s tariff lie. They helped create it.
And although the European Union has a vast number of SMEs, which are also its most important economic factor, it clearly does not have a political culture that is friendly towards SMEs or gives them priority.
That is a clear sign of spreading socialism.
Latest news
- CBAM Default Values: 7 Months for a Technical Correction
- The Stainless Steel Slab That Nobody Wants to Have Ordered
- New EU Steel Regulation Enters Its First Review
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
