FX.co ★ Copper Prices Surge on Tariff Fears

On Monday, copper futures surged nearly 5%, reaching approximately $4.90 per pound, nearing a two-month peak. This comes as investors anticipate potential US tariffs on copper imports. The uptrend followed President Donald Trump's late Friday announcement to double tariffs on steel and aluminum to 50% as of June 4, escalating trade tensions with crucial partners. The European Union criticized this decision, warning that it hampers efforts to achieve a "negotiated solution" in the ongoing trade conflict. This escalation has intensified speculation that copper might be targeted next, especially with an ongoing U.S. investigation into copper imports. Currently, U.S. copper prices are trading at a premium exceeding 10% over London prices, as traders factor in the likelihood of new tariffs. Previously, Trump initiated an investigation aimed at safeguarding the domestic copper industry and encouraging the onshoring of smelting operations.