Copper prices and related Asian copper-mining stocks declined sharply after former President Donald Trump announced plans to impose a 50 percent import tariff on Chinese goods if re-elected. Asian factories initiated sell-offs amid fear of rebounding U.S. protectionism disrupting global supply chains.
Copper futures in Shanghai and London declined between 2 percent and 3 percent, prompting notable market sell-offs. Key copper miners including China’s Tongling Nonferrous and Australia’s BHP and Rio Tinto saw shares dip in local markets. Analysts point to the specific danger posed to China’s high-volume copper imports—used heavily in construction, infrastructure, electric vehicles, renewable energy, and electronics production.
An intensified trade war with steep duties could depress Chinese economic growth, directly affecting metal demand. Global copper demand is projected to exceed annual supply by over 2 million tonnes this year; sudden Chinese demand slumps could upend that balance, sending prices lower.
Market participants emphasize that prices had rallied earlier this year on expectations of Chinese stimulus and global growth. Tariff fears triggered by Trump introduce renewed uncertainties. Traders now await China’s economic response, likely focusing on domestic support measures to offset these pressures.
Trump's tariff outline highlights how geopolitical shifts can quickly upend metals markets. Industrial commodities like copper are deeply tied to global demand—any slowdown in China poses trade risk. Still, copper’s supply shortage offers long-term resilience. Pricing and stocks may recover post-election if stimulus returns and trade tensions ease. Investors should monitor policy evolution and demand indicators.