FX.co ★ Copper Gains as Chile Seeks US Tariff Exemption

Copper futures rose above $5.65 per pound on Wednesday, recovering from earlier declines in the week following Chile's finance minister's announcement of plans to seek an exemption from new US import tariffs. As the largest supplier of copper to the United States, Chile plays a crucial role in ongoing trade discussions. The Trump administration plans to implement a 50% tariff on copper imports starting August 1, although ambiguity persists regarding the specific types and sources of copper that will be impacted. Consequently, traders have been hastening shipments to the US before the deadline. Analysts, however, caution that demand for copper destined for the US could experience a significant drop once the tariffs take effect. Adding to the market's uncertainty, US-China trade negotiations in Stockholm concluded on Tuesday without reaching an agreement to extend the current truce. Treasury Secretary Scott Bessent emphasized that any agreement would require President Donald Trump's final approval.