Copper markets have slipped after former President Donald Trump floated plans for a 50% tariff on Chinese imports, triggering fear among Asian mining stocks and commodity traders. Shanghai and London copper futures dropped 2–3%, dragging down shares of Tongling Nonferrous, BHP, and Rio Tinto.
Copper remains a bellwether metal for global economic activity, underpinning industries from electric vehicles to data centers. The looming tariff threat could slow Chinese consumption—a market accounting for nearly half of global copper demand. That risks reversing a supply-demand imbalance projected to remain tight.
Earlier rallies in metal prices, driven by stimulus expectations, evaporated overnight. Markets are now closely watching China’s policy responses—potential monetary or fiscal support could cushion demand shocks.
Trump's tariff rhetoric underscores how political risks ripple through commodity markets. Copper fundamentals remain strong, but policy uncertainty calls for cautious positioning. Long-term demand trends may still support prices, but investors should watch China’s macro moves and geopolitical developments.