Forgive yourself if you haven’t thought much about it lately. But yesterday the price for contracts for the not very careful metal price rose viciously, because it guessed-that President Trump announced a new tariff plan.
“Today we are making copper,” said Trump, hovering the idea that the USA imported copper should impose a 50% tariff.
The copper prices rose by 17%in New York on Tuesday, but fell back this morning. Futures Contracts were $ 5.54 per pound this morning, which has increased by 8% in the past five days. Since the financial crisis of 2008 there has not been so much drama on the copper market.
Analysts, investors and economists are tense.
As everyone knows, the USA is not self -sufficient in copper. The US imports 810,000 tons of copper per yearBecause the metal is used to … pretty much everything! Every electronic device certainly contains in your house and car copper.
Incidentally, this is not a debate. There is a broad agreement that the United States cannot produce all the copper it needs. Jeffries Analyst Christopher Lafemina says it. The Mining Association of Canada says it. And Morgan Stanley Says like this: According to Research, around 36% of the copper consumed in the USA are imported Quoted by Bloomberg. It would take years for the mining capacity to be necessary for the United States to create all copper it needs.
Trump’s 50% tariff would therefore be an uncomplicated price increase that has imposed US companies and consumers. Copper prices actually fell In London, the producers expected a reduced demand from the American market this morning.
This is a problem for Trump, who has to reduce the chairman of the US Federal Reserve, Jerome Powell, to reduce interest rates. But Powell will not lower interest rates if the spiral price of copper raises inflation. Research of UBS and Pantheon macroeconomics – seen by Assets This morning – very turned The A copper tariff would add 0.02% to 0.03%. This is not a large amount – so, despite the copper problem, Powell could still exist the wobbly space that he has to lower in September in September.
And behind the copper chaos there is a bigger potential problem: Trump’s 200% tariff proposed On imported medicines: “A tariff rate of 200% for pharmaceuticals would be a much larger business because they make up 8% of total imports. However, the president threatened this exorbitant interest rate after a proposed transition period of at least one year, which would allow time for massive inventory, which would restrict the effects on costs and consumer price inflation.
Of course, not just a “larger offer” for the markets. It could be a political problem for the president. Somehow Trump has to sell more expensive copper and drugs to a public that would probably no longer pay for these basics.
Today the intelligent money says that this is all drama, for the sake of drama. It is waiting for the actual tariff transactions to be cut before the headlines believe. The S&P Futures sat calmly this morning and only by 0.12%. It is almost as if investors don’t believe that Trump will ultimately go through these plans.
Here is a snapshot of the campaign in front of the opening bell in New York:
- S&P 500 Futures were flat this morning in the Premarket trade after the index itself closed at 6,225 apartment yesterday.
- The Asian markets were mostly this morning with the exception of China, where the CSI 300 0.18% and the Hang Seng in Hong Kong lost more than one point.
- Stoxx Europe 600 rose by 0.5%in early retail.
- The British FTSE 100 rose by 0.22%when it approached another high.
- Bitcoin remained over 108,000 US dollars.
