Copper Expensive amid Trump’s tariffs
The United States may impose tariffs on copper imports in the coming weeks, well ahead of the 270-day deadline for a decision.
President Donald Trump instructed the Commerce Department to investigate potential copper tariffs and submit a report within 270 days. However, the review is progressing rapidly, suggesting a decision may be imminent.
Bloomberg reports that prices have already surged, with the price difference between copper in New York and London reaching a record $1,400 per ton this week.
The investigation appears to be a formality since Trump has already indicated his intention to impose duties.
The administration has not disclosed a specific timeframe, but officials expect a resolution before the deadline. The tariffs, which could be as high as 25 percent, may disrupt global copper markets.
Citigroup and Goldman Sachs predict that by the end of the year, the US will impose import taxes of 25 percent on copper. Kostas Bintas, the head of metals trading at Mercuria, estimates that 500,000 tonnes of copper are being sent to the US, which is reducing supply in the global market.
LME prices could rise from about $10,000 per tonne to over $12,000 amid scarcity. A significant amount of copper has shifted to the U.S amid higher prices, leading to fewer imports. China also increased its cargo shipments in the first two months of the year as stockpiles continued to moderate in volume.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals