Mining stocks react after Trump suggests 50% tariff on Copper
- Copper price reaches record as Trump suggests 50% tariff.
- US Copper price surges 13.2% to $5.645/lb on Tuesday.
- Freeport-McMoRan, which owns six US-based Copper mines, gains over 3%.
- Some foreign Copper mining stocks languish on news.
Some US mining stocks are making gains on Tuesday after US President Donald Trump said he was expecting to place a 50% tariff on Copper imports. The July delivery COMEX Copper contract surged 13.2% to close at 5.645/lb, the highest price on record going back to 1968.
Before a cabinet meeting on Tuesday, Trump told a reporter, "I believe the tariff on copper, we're going to make it 50%," but Trump did not say when he expected the tariff to come into effect.
Some US Copper mining stocks gained on the news. Freeport-McMoRan (FCX) spiked to an 8-month high above $48 per share but traded down to a 3.5% gain later in the session.
Freeport-McMoRan operates six coppers mines in the US. These are the Chino, Bagdad, Morenci, Safford, Sierrita and Tyrone complexes, all of which are located in the states of Arizona and New Mexico.
The more diversified UK miner Anglo American (AAUKF) also rose about 3.5%.
However, Southern Copper (SCCO), which has much of its copper production in South American countries and Mexico, saw its share price drop 1% as it doesn't stand to benefit from the tariff.
Many other foreign copper producers, including the UK's Antofagasta (ANFGF) and Canada's First Quantum Minerals (FQVLF) also saw their share prices fall.
The Global X Copper Miners ETF (COPX) gained 0.68% at the time of writing.
Global X Copper Miners ETF (COPX) daily chart
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Author
Clay Webster
FXStreet
Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.
