Copper markets were jolted by President Donald Trump’s vow to impose 50 per cent tariffs on imports of the world’s most important industrial metal, leaving producers and traders weighing the consequences of such a move.
Although US copper prices shot higher after Trump delivered his threat on Tuesday, the global price on the London Metal Exchange sank on Wednesday as traders bet that any tariffs would ultimately hit demand for the metal.
“Eventually, physical demand growth for copper worldwide will come under pressure, as downstream players seek to defer consumption,” said Tom Price, commodities analyst at Panmure Liberum. The US imports about 60 per cent of its copper, primarily from Chile, with the rest met by domestic mines or recycled scrap.
Copper-producing countries digested the news, with Zambia calling for a tariff waiver.
The US flagship infrastructure project in Africa, the Lobito Corridor, a rail link, could be at risk due to the copper tariffs, the chair of state-owned mining company ZCCM told the Financial Times.
