Copper futures dipped below $4.25 per pound on Thursday, reversing some of the gains seen in the previous session, as growing tariff threats from US President Donald Trump continued to dampen market sentiment.
Copper prices drop on tariff and China worries
Earlier this week, Trump revealed plans to impose tariffs on imported chips, pharmaceuticals, steel, aluminum, and copper to strengthen domestic production and reduce reliance on imports. This announcement sparked concerns about potential disruptions to global supply chains and demand.
Adding to the uncertainty, US government officials have sent conflicting messages about whether the Trump administration will proceed with its planned first round of tariffs on Mexico, Canada, and China, which are set to take effect by February 1.
China’s manufacturing slump weighs on copper prices
Meanwhile, in China, the world's largest copper consumer, new data showed an unexpected contraction in manufacturing activity for January, signaling a potential slowdown in demand. With Chinese markets closed for the week-long Lunar New Year holiday, trading volumes are expected to remain lower than usual, adding to the volatility in the copper market.
