In a dramatic twist, US President Donald Trump has announced a sweeping 50% tariff on all imported copper, effective August 1. Citing national security concerns, this bold move has sent copper prices skyrocketing and left global markets reeling. 🚀
On the day of the announcement, copper futures on the New York COMEX exchange leaped by 13%, with prices climbing even higher during Asian trading hours. The surge is a clear sign of investor anxiety about the long-term impacts of such a major policy change.
Experts are weighing in on the decision. Ole Hansen, head of commodity strategy at Saxo Bank, warned that the US remains structurally short on copper — a gap that could take years or even decades to close. Data from the US Geological Survey shows that in 2024, copper production in the US made up only 4.8% of global output, with nearly half of domestic demand fulfilled by imports.
Meanwhile, Citigroup has called the tariff a "watershed moment," noting that the move is likely to disrupt trade flows and prompt a preemptive stockpiling wave by importers. Analysts at Macquarie expect that as buyers shift from stockpiling to drawing down on reserves, supply-demand dynamics could see a major realignment.
Copper is not just another metal—it's a vital component in industries ranging from construction and power grids to electric vehicles, semiconductors, and renewable energy infrastructure. As the US navigates these choppy waters, the long-term effects on manufacturing, infrastructure projects, and clean energy development remain uncertain. Stay tuned for more updates on this evolving economic story! 🔍
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Trump slaps 50% tariff on copper imports, rattling global markets
cgtn.com
