Copper Prices Fall Amid Trade Tensions and Economic Concerns

Copper futures slipped to around $4.75 per pound on Friday, marking a 7% weekly loss, as global recession fears and sweeping US tariffs pressured the industrial metal.

Trump’s Tariffs Shake Commodity Markets

The sharp drop in copper prices follows President Donald Trump’s recent trade measures, which include:

• A 10% baseline tariff on all imports starting April 5.

• Higher tariffs on China (54%), the EU (20%), Japan (24%), and India (27%)—all major consumers of copper.

The tariff announcement sparked concerns over slowing industrial activity and global trade disruptions, leading to a sell-off in base metals.

Copper Exempt from New Tariffs, But Demand Concerns Persist

Despite widespread trade restrictions, the White House confirmed that copper, gold, energy, and certain minerals unavailable in the US will not be subject to new tariffs.

Copper prices had recently rallied to a record high in late March on speculation that Trump’s administration might impose copper-specific duties. However, with no such measures announced, the market has reversed course, shedding those speculative gains.

Slowing Global Growth Weighs on Copper Demand

Copper is often seen as a barometer of global economic health, given its widespread use in construction, manufacturing, and technology.

• China, the world's top copper consumer, could face slower demand amid escalating trade tensions.

• Europe’s manufacturing sector is already showing signs of strain, further dampening copper’s demand outlook.

• Rising inflation and potential Fed rate cuts add to the uncertainty in global commodity markets.

Market Outlook: Will Copper Prices Rebound?

With Trump’s trade policies clouding the global economic outlook, copper prices remain vulnerable to further downside pressure.

For now, traders are closely watching:

• China’s response to US tariffs and potential countermeasures.

• The Federal Reserve’s policy direction, as lower interest rates could support industrial demand.

• Global economic data, particularly manufacturing and construction trends.

While long-term demand fundamentals remain strong, copper’s short-term trajectory hinges on trade negotiations and economic sentiment in the weeks ahead.

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