US President Donald Trump suggested that the country would impose tariffs on copper imports within several weeks, earlier than the timeline previously mentioned. Despite this, copper stocks such as Hindustan Copper, Hindalco Industries, and Vedanta saw gains in the opening session on March 26.
Trump, looking to thwart what his advisers see as a move by China to dominate the global copper market, signed an order at the White House directing Commerce Secretary Howard Lutnick to start a national security probe under Section 232 of the Trade Expansion Act of 1962. That is the same law Trump used in his first term to impose 25% global tariffs on steel and aluminum.
The report was expected to be submitted in a few months. However, the report is expected to presented soon, with the news sending copper prices in New York surging.
White House trade adviser Peter Navarro had said the investigation would be completed quickly, ”in Trump time.” Navarro said China was using state subsidies and excess capacity to undermine competition and gain control over global copper production, in much the same way it now dominates steel and aluminum production.
At 9.20 am, Hindustan Copper shares were higher by 1.3 percent to quote Rs 232, while Hindalco's stock was up 0.6 percent at Rs 697.8. Shares of Vedanta rose 1.6 percent to Rs 468.4.
Copper prices have been steadily rising ever since President Trump announced his plans for reciprocal tariffs. However, the announcement of possible 25 percent tariffs on automobiles and
semiconductor chips, caused volatility and a shadow over demand trends for industrial metals. Copper is in a positive trend, with an expected bullish momentum going ahead, noted Tata Mutual Fund.
The momentum in copper prices has been strong, as persistent supply constraints continue to support prices, reinforcing its bullish outlook.
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President Trump said he plans to limit exceptions to his tariff push, the latest cryptic hint about a planned April 2 announcement of reciprocal duties on global trading partners. US trading partners have raced to secure carveouts ahead from the levies Trump has placed at the center of his economic agenda, but the president indicated that they would be tough to secure.
“I know there are some exceptions, and it’s an ongoing discussion, but not too many, not too many exceptions,” Trump said in an interview. “No, I don’t want to have too many exceptions.”
The move is the latest by Trump to upend decades of business support for free trade that he railed against as both candidate and president for hollowing out the U.S. industrial base, an upheaval now aimed at long-time U.S. allies like Canada and Mexico as well geopolitical adversaries like China.
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