Copper Stocks Sink as White House Tariff Uncertainty Spooks Traders
Copper future and related stocks plunged on Thursday morning after a Reuters report said that the White House's "copper tariff plan stalls amid affordability concerns." The Trump administration has yet to decide whether to impose tariffs on refined copper, sending copper prices around the world to record highs this summer as physical copper flooded US warehouses. The report from the outlet: The…
Copper prices plummeted on Thursday after a Reuters report suggested the White House's proposed tariff on refined copper faced affordability challenges. The United States is currently experiencing record-high copper prices due to surpluses of physical copper in its warehouses. The White House has not yet decided on the refined copper tariffs, as officials weigh the potential costs of higher prices against the benefits of promoting domestic mining.
This uncertainty has eroded the tariff trade risk premium, causing US copper prices to drop by 4.6%. Major copper producers, including Freeport-McMoRan, Southern Copper, and Teck Resources, saw significant declines of 8%, 7%, and 7.9%, respectively. The report is likely to further tighten the CME-LME arbitrage, which had previously benefited US copper exporters like Freeport.
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