Shares of copper mining companies listed in India fell in early trade on July 9 following US President Trump's threat to impose a 50 percent tariff on imported copper soon, leading to a surge in US prices of the metal by more than 12 percent, while LME Copper, the global benchmark, fell on fears of disruption.
Prices of US Comex copper futures jumped over 12 percent to hit a record high after Trump’s announcement, as the 50 percent rate mentioned by Trump was higher than analysts’ expectations.
Shares of Vedanta, Hindustan Copper and Hindalco Industries shares fell in early trade, with shares of Hind Copper down by over 1.8 percent at 9:48 am.
Also Read: Our LIVE blog on stock market updates
"I believe the tariff on copper, we're going to make 50%," the US President told reporters at a White House cabinet meeting. Following this, US Commerce Secretary Howard Lutnick said in an interview with CNBC that the copper tariffs will likely be put in place by the end of July or August 1, and President Trump would post details regarding the same on his Truth Social media account on Tuesday.
"The idea is to bring copper home, bring copper production home, bring the ability to make copper, which is key to the industrial sector, back home to America," Lutnick said. He added that the administration's Section 232 investigation into US imports of the red metal was completed, much ahead of the November deadline for the review.
Trump’s copper tariff dare comes as the demand for the metal is expected to rise going ahead, with increasing demand seen from data centers, car companies and power producers. Already, there are duties in place on import of steel, aluminum and automobiles into America.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
