Copper prices fell on Tuesday as the dollar gained ground against most major rivals amid uncertainty about Trump’s EU tariffs.
An analysis released today from Economies.com showed copper price failed to surpass $4.8100, leading to profit-taking and sending the price to $4.7400.
Copper prices are expected to waver in upcoming trading as investors assess global demand developments, especially in China, and US monetary policy changes.
US President Donald Trump said he decided to delay the timing of his 50% EU tariffs until July 9.
It came after a request from European Commission President Ursula von der Leyen to give negotiators more time to reach a deal.
On copper in particular, Trump has strongly hinted at a 25% tariff on copper imports in February, leading to accelerated shipments to the US, and sending US prices to a record $11,633 a ton in March, which is $1570 higher than London prices.
The Impact on European Industry
US tariffs threaten EU plans to bolster its strategic minerals independence, which aim at expanding mining of critical minerals such as cobalt, lithium, and nickel among other minerals, but US tariffs on aluminum and potentially copper would compromise such efforts and send the surplus inside European markets, flooding local industries.
Future Outlook
Copper prices are expected to waver amid ongoing US-EU trade tensions, with global copper demand expected to outstrip supplies by 30% by 2035 due to the shift to clean energy, which would likely raise prices in the long term.
Separately, the dollar index rose 0.3% as of 15:06 GMT to 99.4, with a session-high at 99.4, and a low at 98.7.
On trading, copper July futures fell 1.3% as of 15:02 GMT to $4.77 a pound.
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