Copper prices soar as US tariffs ignite market optimism
Copper prices on the LME metal exchange in London are rising, similar to other base metals, after the US president downplayed concerns about the risk of a recession. American tariffs on steel and aluminum came into effect on Wednesday, brokers report.
Copper for 3-month delivery is priced higher compared to the $9,662.00 per metric ton noted at the close of the previous session. On Comex in New York, copper costs $4.81 per pound, an increase of 0.97%. On the SHF metal exchange in Shanghai, copper is priced at 79,180.00 yuan ($10,906) per metric ton, up by 1.80%.
US President Donald Trump downplayed concerns about the risk of a recession in the United States in connection with his trade policy.
When asked if he was worried about a recession in the US, Donald Trump replied: I don't see it at all. I think this country is going to boom.
The US president also downplayed the evident financial market decline, saying on Tuesday at the White House that markets will rise and fall and it doesn’t worry him.
Several hours later, Donald Trump instructed his administration officials to prepare for more tariffs, suggesting the tariffs could be even higher. The US president declared that higher tariffs simply mean it is more likely that companies will move their operations to the USA.
- The biggest win is not the tariffs. That's a big win. It's a lot of money. But the biggest win is they move into our country and produce jobs - he pointed out.
No tariffs on Canada. Trump withdraws decision
The USA will not impose 50-percent tariffs on Canadian steel and aluminum on Wednesday, but the previously announced 25-percent tariffs on these goods from all countries will come into effect, the White House announced on Tuesday. This is the result of the Ontario provincial government in Canada withdrawing an additional electricity charge for consumers in the USA.
On Wednesday, 25-percent tariffs on the import of aluminum and steel into the USA came into effect. At the close of the previous session, copper on the LME gained $134, bringing its price to $9,662.00 per metric ton.
