Copper prices spiked by 17% in New York after a proposed 50% tariff on imports was announced by President Trump. The price increase reflects concerns among investors about the implications for the U.S. market, as the U.S. is not self-sufficient in copper and imports 810,000 metric tons annually. The broad consensus among analysts is that the tariffication would lead to increased costs for American businesses and consumers. Futures contracts continued to demonstrate volatility, with fluctuations indicating uncertainty in demand and market responses.
The price of copper moved upward sharply yesterday after President Trump said he thought imports should be taxed at 50%. Copper prices were up 17% in New York on Tuesday but fell back this morning.
The U.S. imports 810,000 metric tons of copper every year, because the metal is used to make pretty much everything, including electronic gadgets in homes and cars.
Trump's 50% tariff would therefore be a straightforward price increase imposed on U.S. businesses and consumers. Analysts, investors, and economists are agog.
About 36% of copper consumed in the U.S. is imported. It would take years to dig the mining capacity needed for the U.S. to generate all the copper it needs.
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