Copper futures dipped below $4.30 per pound on Wednesday, marking a third consecutive session of losses as US President Donald Trump’s threat of a 10% tariff on China reignited fears of a global trade war.
Copper prices drop amid tariff concerns
Trump also floated the idea of imposing a 25% tariff on Mexico and Canada but stopped short of turning these threats into action.
Adding to the bearish sentiment were cautious market conditions ahead of China’s Lunar New Year holiday and upcoming interest rate announcements from the Bank of Japan and the US Federal Reserve.
Optimism around China moves
Despite the downtrend, optimism lingers that China will deliver on its promise of additional economic stimulus. State media reports suggest the People’s Bank of China may lower the reserve requirement ratio for banks later this month, providing some hope for demand recovery.
