Copper Futures Take a Nosedive Following Trump's Tariff Announcement

In a move that sent shockwaves through the markets, copper futures experienced a dramatic plunge on Wednesday. This came after the White House disclosed that President Donald Trump had signed a proclamation imposing a hefty 50% tariff on select copper imports, a decision justified on the grounds of national security.

Details of the Tariff Implementation

The new tariff, set to take effect from August 1, targets semi-finished copper products and copper-intensive derivative products. However, it spares copper scrap and essential copper input materials, including copper ores, concentrates, mattes, cathodes, and anodes, as outlined in the released fact sheet.

Market Reaction

The immediate market reaction was stark, with Comex copper futures for September dropping a staggering 18.16% to $4.60 per pound by 2:36 pm ET, highlighting the tariff's significant impact on investor sentiment and copper prices.