Copper Retreats as Trade Tensions Spark Risk-Off Mood
2025-04-16 06:46
By
Jam Kaimo Samonte
1 min. read
Copper futures slipped to around $4.55 per pound on Wednesday, reversing early-week gains as escalating global trade tensions dampened investor appetite for risk assets.
The pullback came amid renewed concerns over U.S.
trade policy, following President Donald Trump’s directive to investigate potential new tariffs on all critical mineral imports—a category that includes many materials sourced heavily from China.
Beijing has pushed back firmly against what it calls Trump’s “trade bullying,” as the country braces for the broader impact of existing and potential U.S.
tariffs.
Market participants are increasingly wary that the same national security rationale used to impose tariffs on steel and aluminum could soon be extended to copper.
The uncertainty has widened the premium on U.S.
copper futures relative to comparable contracts on the LME, reflecting fears of strained domestic smelting capacity and possible disruptions in supply chains.