Copper futures experienced a decline, dropping below $5.60 per pound on Tuesday, which ended a two-day upward trend. This shift occurred as investors cautiously reduced their exposure to riskier assets due to the approaching August 1 deadline for US tariffs. According to US Treasury Secretary Scott Bessent, the impending higher tariffs are designed to place increased pressure on countries to negotiate better trade agreements. Bessent also noted that President Donald Trump will make the final decision about whether to postpone the deadline for those nations that demonstrate substantial progress in negotiations.
Earlier this month, copper prices soared to unprecedented levels following Trump's announcement of a 50% tariff on copper imports starting August 1. The intent behind this policy is to bolster the domestic industry and diminish dependence on refined imports. This announcement led to a record 25% premium between US copper futures and London Metal Exchange contracts, as traders hurried to expedite shipments in anticipation of the impending tariff implementation.
