FX.co ★ Copper Falls to 4-Month Low

Copper futures have declined to under $4.20 per pound, marking a four-month low, amidst growing concerns that President Trump's intensifying trade war may incite a global recession. Recently, President Trump threatened to impose an additional 50% tariff on Chinese imports unless Beijing reduces its tariffs on American goods. This move has heightened worries of decelerating economic growth and increased inflation. Nonetheless, there is optimism that tensions might ease, as President Trump has expressed willingness to engage in discussions with significant partners, including Japan. Treasury Secretary Scott Bessent mentioned that close to 70 nations have initiated contact to negotiate tariff agreements. It is noteworthy that the new US tariffs do not encompass copper, gold, energy, and certain essential minerals that are not domestically sourced. Copper prices had previously surged to record levels in late March due to speculations of potential targeting, although those concerns have since diminished, leading to a price reduction.