Business

IIE DIGITAL DESK : Global markets were rattled after U.S. President Donald Trump announced a sharp 50% tariff on copper imports during a Cabinet meeting on July 8, 2025. The unexpected move, aimed at bolstering domestic copper production, sent U.S. copper futures soaring to historic highs, while metal and mining stocks worldwide—including in India—took a hit .

On COMEX, copper futures surged over 12–13%, reaching a record $5.64–$5.69 per pound—a level not seen since the 1960s . This explosion in prices came as traders rushed to front-run the tariffs, triggering a historic premium over London Metal Exchange rates and disrupting traditional arbitrage flows .

While U.S. copper miners such as Freeport-McMoRan saw their shares rise—boosted by expectations of greater domestic demand—global metal equities suffered. According to Upstox, India’s Hindustan Copper fell 2.87%, with other heavyweights like SAIL, Tata Steel, Hindalco, Vedanta, and Jindal Stainless also trading in the red—Hindustan Copper leading the declines .

This dip in metal stocks is reflected across broader indexes: the NIFTY METAL index dropped nearly 1.7%, with most of its 15 constituents down on the day.

Trump’s aggressive tariff marks another step in his protectionist trade strategy—building on earlier duties on steel and aluminum and threats of similar levies on pharmaceuticals, semiconductors, and goods from several countries . The 50% rate on copper is particularly notable, signaling deep concern about preserving U.S. supply chains for infrastructure and tech sectors like EVs, defense, power, and consumer electronics .

In reaction, U.S. copper futures jumped, highlighting the short-term impact; however, analysts caution that sustained domestic production gains may moderate long-term price increases.

India’s metal sector, heavily reliant on exports, stands to face fresh headwinds. The strong dollar and rising global prices could make Indian shipments less competitive, squeezing margins. That risk was apparent today as Hindustan Copper tumbled approximately 3%, while other metal major stocks followed lower . Even steel and aluminum stocks began feeling the ripple effects, echoing a similar trend earlier this year when Trump raised tariffs on those commodities.

Markets beyond metals also responded to the tariff shock. In the U.S., the Dow Jones fell by about 0.4%, with the S&P 500 slipping 0.1% and the Nasdaq slightly up—suggesting selective investor caution amidst broader resilience . Globally, Asian equity markets were mixed: Japan’s Nikkei, Australia’s ASX, and Hong Kong’s Hang Seng drifted lower, while China’s CSI300 and South Korea’s KOSPI showed modest gains .

Currencies and bond markets also reflected the turmoil: the U.S. dollar strengthened to a multi‑week high, while Treasury yields modestly rose. At the same time, London and Shanghai copper futures showed declines, indicating fragmented market reactions.

Analysts see both short‑ and medium-term turbulence ahead. In the U.S., the tariffs aim to encourage domestic mining and reduce foreign dependence—a policy with clear protectionist intent . For exporters like India, strategic responses may include focusing on non-U.S. markets or pushing for bilateral trade negotiations.

Trading firms like Morgan Stanley and market watchers at Plusmining note that while copper prices may stay elevated initially, increasing domestic inventories could ease the crisis once tariffs take effect .

Trump’s announcement of 50% tariffs on copper imports has triggered a dramatic surge in U.S. copper prices while hammering global metal stocks, including Hindustan Copper’s 2–3% fall. The event underscores deepening trade tensions with wide-reaching implications for commodity flows, industrial supply chains, and export-dependent economies like India.