FX.co ★ Copper Extends Losses on Trump Tariff Threats

Copper futures dropped below $5 per pound on Monday, marking a third consecutive session of declines as investors grapple with uncertainties surrounding global trade. This downturn followed a warning from US President Donald Trump, who threatened to implement an additional 10% tariff on countries he claims are pursuing "anti-American policies on BRICS." Analysts caution that these measures could impede global economic growth and reduce demand for industrial metals. The recent decline comes after copper prices surged to a three-month high last week, spurred by tightening global supply and a rush to ship goods to the US in anticipation of potential import tariffs. This surge led to significant inventory reductions at both the London Metal Exchange and the Shanghai Futures Exchange. However, experts note that the rally could swiftly reverse if US demand weakens or if any forthcoming tariff announcements fail to meet market expectations.