US copper prices hit record high as Donald Trump threatens 50% tariff
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
There’s turmoil in the copper market after it became the latest frontline in Donald Trump’s trade war
The copper price has hit a record high in the US, and fallen in other markets, after Donald Trump announced he would impose a 50% tariff on imported copper.
During a cabinet meeting at the White House, Trump revealed “Today, we’re doing copper,” adding:
“I believe the tariff on copper, we’re going to make it 50%.”
Copper is a critical element in electric vehicles, the power grid, military hardware and many consumer goods.
It’s known as “Dr Copper” in the financial markets, because its price is a gauge of the health of the world economy.
Investors’ reaction to Trump’s annoucement was swift – copper futures traded in the US jumped by over 10% to $5.682 per pound, closing at an all-time high.
That’s the biggest jump on records stretching to 1969, the Financial Times reported.
More expensive domestic copper, and a 50% tariff on imports of the metal, will add to inflationary pressures on US businesses and consumers.
Trump also said he would soon introduce levies on semiconductors and pharmaceuticals – two shoes which investors have been waiting to drop for months.
Pharmaceutical imports are also “going to be tariffed at a very, very high rate”, the president said. “Like 200%.”
“We’re going to be announcing pharmaceuticals, chips and various couple of other things – you know, big ones,” he added, of the administration’s tariff plans.
The agenda
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10:30am BST: Bank of England publishes its latest Financial Stability Report
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11am BST: Bank of England press conference
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Noon BST: US weekly mortgaage application data
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1.30pm BST: Parliamanet’s business committee quiz Trade minister Douglas Alexander and Cabinet Office minister Pat McFadden on economic security
Key events
WPP shares slide 13% after cutting profit forecast
Shares in advertising giant WPP have slumped by 13%, after it slashed its forecast for revenues and profits this year and blamed a “challenging economic backdrop”.
WPP warned that “continued macro uncertainty” was weighing on client spend and leading to weaker net new business than originally anticipated.
The company now expects its like-for-like revenue, excluding fees paid to suppliers, will fall by between 4.2% to 4.5% in the first half of this financial year.
Mark Read, chief executive officer of WPP – whose departure was announced a month ago – says June was tougher than expected:
“Since the start of the year, we have faced a challenging trading environment with macro pressures intensifying and lower net new business. While we expected the second quarter to be similar to the first quarter, performance in June was worse than anticipated and we expect this pattern of trading in the first half to continue into the second half.
“As a result, we are updating our guidance for the full year and reducing our expectations on LFL revenue less pass-through costs growth to -3% to -5% (from flat to -2%) with a year-on-year decline in headline operating profit margin of 50 to 175 bps (vs. around flat previously).
Shares in copper producer Antofagasta have dropped by over 3% at the start of trading in London.
Other miners are also weakening, with Glencore (-2.2%) and Anglo American (-1.8%) among the FTSE 100 fallers.
Copper tariffs: What the experts say
Analysts at investment bank Jefferies have warned that the new 50% tariff on copper will drive up costs in the US economy, saying:
“The US does not have nearly enough mine/smelter/refinery capacity to be self-sufficient in copper.
“As a result, import tariffs are likely to lead to continued significant price premiums in the US relative to other regions.”
Tony Sycamore, market analyst at IG, questioned whether the Trump administration can easily make the US self-sufficient in copper:
The aim of the new copper levy is to encourage domestic copper production, which is a challenging objective given the complexities of relocating a copper mine.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, says the latest trade news from Trump was not reassuring:
First, hopes of an extension to the current tariff pause—which ends today—were dashed after Donald Trump threatened that the August 1st deadline will be final, with no further extensions.
Second, he slapped a 50% tariff on copper and announced that pharmaceuticals will face 200% tariffs within a year. The news sent COMEX copper futures to a record high, while copper prices on other platforms like India’s MCX dropped, on expectations that surplus supply would shift to alternative markets.
Trump: more trade news coming up
Donald Trump is expected to send more letters to countries, informing them of new tariff rates or announcing trade deals, today.
Last night on his Truth Social site, the US president wrote:
We will be releasing a minimum of 7 Countries having to do with trade, tomorrow morning, with an additional number of Countries being released in the afternoon. Thank you for your attention to this matter!
In a separate post, Trump also insisted that his new deadline of 1 August to reach trade deals would not slip, writing:
As per letters sent to various countries yesterday, in addition to letters that will be sent today, tomorrow, and for the next short period of time, TARIFFS WILL START BEING PAID ON AUGUST 1, 2025. There has been no change to this date, and there will be no change. In other words, all money will be due and payable starting AUGUST 1, 2025 – No extensions will be granted. Thank you for your attention to this matter!
Copper price outside US falls
Copper prices outside the US have fallen, following Trump’s threat of a 50% tariff on imports.
On the London Metal Exchange, the metal slid as much as 2.4% at the open, before easing to change hands at $9,653 a ton, 1.4% lower, Bloomberg reports.
US copper prices hit record high as Donald Trump threatens 50% tariff
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
There’s turmoil in the copper market after it became the latest frontline in Donald Trump’s trade war
The copper price has hit a record high in the US, and fallen in other markets, after Donald Trump announced he would impose a 50% tariff on imported copper.
During a cabinet meeting at the White House, Trump revealed “Today, we’re doing copper,” adding:
“I believe the tariff on copper, we’re going to make it 50%.”
Copper is a critical element in electric vehicles, the power grid, military hardware and many consumer goods.
It’s known as “Dr Copper” in the financial markets, because its price is a gauge of the health of the world economy.
Investors’ reaction to Trump’s annoucement was swift – copper futures traded in the US jumped by over 10% to $5.682 per pound, closing at an all-time high.
That’s the biggest jump on records stretching to 1969, the Financial Times reported.
More expensive domestic copper, and a 50% tariff on imports of the metal, will add to inflationary pressures on US businesses and consumers.
Trump also said he would soon introduce levies on semiconductors and pharmaceuticals – two shoes which investors have been waiting to drop for months.
Pharmaceutical imports are also “going to be tariffed at a very, very high rate”, the president said. “Like 200%.”
“We’re going to be announcing pharmaceuticals, chips and various couple of other things – you know, big ones,” he added, of the administration’s tariff plans.
The agenda
-
10:30am BST: Bank of England publishes its latest Financial Stability Report
-
11am BST: Bank of England press conference
-
Noon BST: US weekly mortgaage application data
-
1.30pm BST: Parliamanet’s business committee quiz Trade minister Douglas Alexander and Cabinet Office minister Pat McFadden on economic security
