FX.co ★ Copper Holds Losses on Tariff Exemption

Copper futures lingered below $4.40 per pound on Friday, poised for a weekly decline of approximately 24%. This decline is attributed to a surprise tariff exemption announced by President Donald Trump. The newly instituted copper tariffs will only affect semi-finished products such as wires and pipes, excluding essential inputs like ore, cathodes, and concentrates, which are the most commonly imported copper forms. Prior to this announcement, traders had accelerated copper shipments into the US in anticipation of the tariffs, artificially driving up domestic premiums. Now that the exemption is in place, these premiums are rapidly shrinking. Analysts also cautioned that the US might experience a surplus of copper, with the possibility of excess inventory being re-exported, further exerting pressure on global prices.