Trump’s 50% tariff shocker stokes copper market mayhem

[SINGAPORE] Copper prices have reacted furiously after US President Donald Trump stunned markets with a 50 per cent tariff on copper imports – a “watershed moment” that sent US futures to record highs, roiled London and Shanghai contracts, and left traders nonplussed.

New York-listed copper futures spiked as much as 17 per cent after the announcement on Tuesday (Jul 8) as traders scrambled to lock in prices ahead of the anticipated tariff. Meanwhile, London and Shanghai futures declined more than 1 per cent, reflecting expectations of reduced US demand.

The surge in US copper prices was, however, short-lived, given the lack of clarity on how and when the tariff would be implemented. US officials alluded to late July or early August as the start date. Citi Research expects an official confirmation of a 50 per cent rate within weeks, and implementation within 30 days.