The White House has delayed its decision on refined copper tariffs, with government officials noting that concerns over high prices could impact manufacturing costs and overall affordability.
Copper prices have surged to record highs over concerns about the potential tariffs, with the three-month copper contract on the London Metal Exchange (LME) rising almost 2% to US$14,858.50 ($20,585) a tonne.
In the US, COMEX copper futures also climbed to a record US$6,894 per pound.
With the November midterm elections looming, the Trump administration is increasingly looking at affordability.
The government is under pressure to bring forward policies that won’t impact costs for consumers any more than they have. With the war in Iran, consumers have seen spiking prices for gasoline, which have risen about 44% from their pre-war baseline.
Expectations of tariffs on refined copper products and copper concentrate have led to surging copper prices lately, leading traders and industrial buyers to build domestic stockpiles.
The expected tariffs are part of President Trump’s broader push to rebuild US domestic manufacturing, critical minerals stockpiling, and reducing reliance on foreign supplies.
Shares of copper producers have fallen on the back of the tariff news, with Freeport-McMoRan (NYSE:FCX) down 7%, Rio Tinto (ASX:RIO) down 2.7%, and BHP (ASX:BHP) down 4.7%.
Write to Amy Rotman at Mining.com.au
Main image: Unsplash
