FX.co ★ Copper Rebounds on Tariff Fears

Copper futures saw a resurgence on Wednesday, surpassing $4.85 per pound after a downturn in the prior session triggered by resurfacing tariff concerns. Investors' anxiety heightened as the June 4 deadline set by President Donald Trump approached, which would see tariffs on steel and aluminum imports double. This stirred speculation that copper might be the next target amidst an ongoing U.S. investigation into copper imports. The recovery came on the heels of a significant selloff on Tuesday, spurred by renewed fears of declining demand. Notably, a private survey revealed an unexpected contraction in China's manufacturing activity in May, marking its lowest point in over two years. The Caixin Manufacturing Purchasing Managers' Index (PMI), which often represents smaller, export-centered firms, indicated persistent caution among Chinese companies amid uncertainties related to U.S. trade policies, despite the 90-day moratorium on certain tariff actions.