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Copper Prices Climb as Gradual Tariff Strategy Weakens Dollar

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.

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