US copper price hits record high after Donald Trump threatens 50% tariff; more trade letters expected today – business live

US copper prices surged over 10% to a record high of $5.682/pound following Donald Trump's announcement of a 50% tariff on imported copper, while global prices declined. This protectionist move, part of broader tariff threats on sectors like semiconductors and pharmaceuticals (up to 200%), is anticipated to fuel inflationary pressures within the US due to limited domestic supply. The action reinforces a firm trade stance, with Trump reiterating an August 1, 2025 deadline for new trade agreements.

Analysis

The US copper market is experiencing significant turmoil following the announcement of a planned 50% tariff on imports, a move that immediately bifurcated global prices. US copper futures (COMEX) surged over 10% to an all-time high of $5.682 per pound, the largest single-day jump since 1969, reflecting anticipated domestic supply constraints. Conversely, London Metal Exchange copper prices fell 1.4%, as markets priced in a surplus of the metal outside the US. This policy is expected to generate substantial inflationary pressure on the US economy, as analysts note the country lacks the domestic capacity to be self-sufficient, likely leading to a sustained price premium for US consumers. The administration has signaled this is part of a broader protectionist push, explicitly threatening future levies on semiconductors and a particularly high 200% tariff on pharmaceuticals, while reinforcing a hard deadline of August 1, 2025, for new trade deals. Separately, but indicative of the challenging macroeconomic environment, advertising giant WPP slashed its full-year guidance, causing its shares to plummet 13%. The company now projects a revenue decline of 3% to 5% and a headline operating profit margin reduction of 50 to 175 basis points, citing a material weakening in client spending.

Key Decisions for Investors

• Re-evaluate holdings in the industrial and manufacturing sectors, as US-based copper producers are positioned to benefit from price protection, while domestic consumers of the metal, including EV and construction firms, face significant margin pressure from input cost inflation.
• Investors should monitor the pharmaceutical and semiconductor sectors closely for formal tariff announcements, as the threatened rates of up to 200% would drastically alter cost structures and necessitate a rapid reassessment of positions in exposed companies.
• WPP's severe profit warning serves as a bearish signal for the advertising industry and broader corporate health, suggesting investors should exercise caution with companies reliant on discretionary corporate spending amid intensifying macro uncertainty.