Copper Prices Plummet as White House Delays Tariff Decision

On Thursday evening, LME copper futures plummeted by over 3% after news emerged that the White House has not yet decided on imposing tariffs on refined copper. The administration is weighing the trade-offs between supporting domestic copper production and potential higher manufacturing costs.

The White House's consideration of copper tariffs had previously driven up capital flows into copper stockpiling in the United States, pushing prices to record highs. Freeport-McMoRan shares fell nearly 7% in pre-market trading, while Rio Tinto’s U.S.-listed ADRs dropped over 3%.

The proposed tariffs aim to encourage domestic mining by driving up the price of imported copper and improving the economic viability of U.S. projects. However, broad-based copper tariffs could also raise costs for manufacturers reliant on the metal, including producers of automobiles, building products, electrical equipment, and other industrial goods.