Copper futures and mining stocks plunged Thursday after a Reuters report said the White House has stalled its decision on refined copper tariffs over affordability concerns. US copper prices sank 4.6% and major miners fell between 6.4% and 8.6% as traders unwound the tariff-driven risk premium built into the metal.
Copper futures and related stocks plunged Thursday morning after a Reuters report said the White House's copper tariff plan stalls amid affordability concerns. The report unwound the tariff trade risk premium, sending US copper prices sinking 4.6%.
Freeport-McMoRan fell 8%, Southern Copper dropped 7% and Teck Resources slid 7.9%. Ero Copper declined 8.6%, Capstone Copper lost 8.2% and First Quantum Minerals retreated 6.4%. As a result, weakness spread into the broader metals trade: as of 10 a.m. ET, Goldman's US Metals basket was down nearly 3%.
The Trump administration has yet to decide whether to impose tariffs on refined copper, a policy uncertainty that sent copper prices around the world to record highs this summer as physical copper flooded US warehouses. According to Reuters, officials are juggling concerns that higher prices for the metal could raise manufacturing costs against the potential benefits of encouraging more domestic mining, according to two people familiar with the matter.
The hesitation comes as the administration is increasingly focused on affordability ahead of November's midterm elections, with President Trump and Republican lawmakers facing pressure to show their economic policies are lowering, not raising, costs for American consumers and businesses.
Sources: Oilprice.com, Reuters
Trading involves risk.
Risk Disclaimer
