In the wake of the “Liberation Day” tariff announcement by President Trump, the prices of copper have plummeted as concerns grow that the newly announced reciprocal tariffs would have a significant adverse effect on the industrial commodity demand around the world.
Metals were generally spared in the import tariffs announced by the U.S. president. However, the concern in the metals industry is that the wider economic ramifications from the tariffs could hurt overall consumption levels and weigh on prospects of global economic growth.
Copper prices slipped to $10,645 per ton, marking a 10% correction from the record high registered the previous week. The red metal also lost ground on the LME, with a single day loss of 2% after the tariffs were announced in Washington, D.C. Copper due for delivery in May was quoted at $9,510.5 per ton on the LME.
Analysts say most metals are facing immense pressure as investors reduce their holdings in risky assets while increasing their holdings in safe haven assets.
The uncertainty in metals markets is further deepened by China’s vow to institute its own countermeasures after the U.S. slapped a 54% duty on Chinese exports to America. China is the second largest economy on the globe, and its threat to hit back at the U.S. is likely to escalate the already gloomy economic outlook.
The EU, another major trading partner of the U.S., was also subjected to a 20% import tariff by the U.S. The economic bloc is mulling how to retaliate.
Overall, the “reciprocal tariffs” imposed by the U.S. have upset the decades-old liberalized system of doing business around the world. Free trade looks to be on its way out the door, and a new era of ultra protectionism is making its way in. Commodity markets are fearful that this shift could hurt global economic prospects in the near term.
The stock prices of major producers of copper showed how badly commodities were concerned about the unfolding trade wars triggered by Trump’s tariff announcement. Teck’s shares dropped by 8.2%. Another major decline was in the stock of Freeport-McMoRan, which slid by 7.9%. Glencore stock lost 6.1% while Anglo American retreated by 6.3%.
The fallout from the tariffs announced on Wednesday may be far from over as different trading partners are working out how to respond to the levies slapped on them. Many are vowing to hit back while some, such as Japan, are calling for the U.S. to make exceptions to those levies. As all this plays out, the price of copper is likely to be subjected to downward pressure until a clear direction for the global economy emerges.
Companies like Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) focusing on developing mineral properties will keenly follow how global powers respond to the trade war in the wake of Trump’s tariffs.
NOTE TO INVESTORS: The latest news and updates relating to Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) are available in the company’s newsroom at https://ibn.fm/ATBHF
About Rocks & Stocks
Rocks & Stocks (“R&S”) is a specialized communications platform delivering deep insights into the mining industry. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, R&S is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, R&S brings its clients unparalleled recognition and brand awareness.
R&S is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from Rocks & Stocks, text “Rocks” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://RocksAndStocks.news
Please see full terms of use and disclaimers on the Rocks & Stocks website applicable to all content provided by R&S, wherever published or re-published: https://RocksAndStocks.news/Disclaimer
Rocks & Stocks
Los Angeles, CA
RocksAndStocks.news
310.299.1717 Office
[email protected]
Rocks & Stocks is powered by IBN
