Copper Prices Extend Gains Amid Gradual Tariff Strategy and Dollar Weakness
Copper prices continued their upward trend as reports suggest the incoming Trump administration may adopt a gradual approach to implementing trade tariffs. This strategy, aimed at enhancing negotiating leverage and mitigating inflation risks, has fueled optimism in Asian stock markets and weakened the dollar, making dollar-priced commodities like copper more attractive to global buyers.
During his presidential campaign, Donald Trump proposed trade tariffs as high as 60% on Chinese exports and 10% to 20% on all imports. However, the potential shift to a phased implementation has provided some relief for copper markets. Copper has gained 4% this year, recovering from last quarter’s decline due to a strengthening dollar and limited success in China’s growth revival efforts.
The tariff plan remains in its preliminary stages and has not yet been presented to President-elect Trump, according to sources familiar with the matter.
In response to potential U.S. tariffs and a continued housing market downturn, China is expected to deploy a range of stimulus measures. According to Jan Hatzius, chief economist at Goldman Sachs Group Inc., China’s economic growth could slow to 4.5% in 2025 from an estimated 5% in 2024, affecting demand in the world’s largest metal importer.
On the London Metal Exchange, copper rose 0.7% to $9,159.00 per ton as of 5:26 p.m. local time. Other metals, including aluminum, zinc, and nickel, showed little change.
