FX.co ★ Copper Heads for Sharp Weekly Gain

Copper futures remained robust above $5.50 per pound on Friday and appeared set to secure a weekly increase of approximately 10%, spurred by a significant shift in US trade policy. President Donald Trump declared a 50% tariff on copper imports starting August 1, following a national security review that underscored the metal's strategic importance. Trump emphasized copper’s vital role as the second most-utilized material by the Department of Defense and its extensive applications across essential sectors such as semiconductors, aerospace, ammunition, data centers, lithium-ion batteries, radar systems, missile defense, and hypersonic weapons. Currently, the US imports nearly half of its copper consumption, with Chile being its main supplier. This tariff announcement led to a notable divergence in pricing, driving the premium on US copper futures over London Metal Exchange contracts to approximately 27% as global copper benchmarks retreated.