Donald Trump’s vow of getting 50 percent tariffs on copper imports left the market for the industrial metal curved on Wednesday.
Although the US copper prices after the US President had strengthened his threat on Tuesday, the global price for the London Metal Exchange on Wednesday when the dealers would ultimately bet that the tariffs would ultimately reach the demand for the metal.
“Finally, the growth of physical demand for copper is under pressure worldwide because downstream players try to postpone the consumption,” said Commodities -Analyst Tom Price at Panmure Liberum.
The United States imports about 60 percent of its copper, with the rest of house mines or recycled scrap.
Shares of copper to New York Comex -Exchange had made record highs this month about expectations that Trump would ultimately target imports. The metal is often used in electronics, in construction and industrial equipment.
The prices for the metal on the Comex decreased by $ 5.53 per pound on Wednesday morning after about 13 percent increased to a record high in the previous session.
“The response to the announcement of Mr. Trump was quick and angry,” said Ed Meir, a consultant of Marex, a Commodities -broker, and added that a 50 percent tariff would be a “massive success” for US consumers.
Howard Lutnick, Minister of Commerce, said on Tuesday in a CNBC interview that he had expected that the tasks will be performed at the end of this month.
Dealers said that this year’s rush to bring copper to the USA would probably slow down. The programs will probably be diverted after August 1st to avoid the tariff.
