Copper Arbitrage Disappears After Trump's Tariff Surprise

Copper prices fell nearly 20% Wednesday after Trump excluded refined copper from new tariffs, ending a months-long rally, according to Benzinga. The tariff is effective August 1 and will target only semi-finished copper goods like wires, rods, and electrical components. Input materials such as cathodes and anodes are exempt. COMEX copper futures fell to $4.50 per pound, erasing the domestic price premium over global benchmarks. Shares of Freeport-McMoRan dropped 9.46% and Southern Copper slid 6.33% following the announcement. Analysts blamed the price crash on Trump’s policy reversal, with Panmure Liberum calling it a “backflip.” The White House also invoked the Defense Production Act to boost U.S. refining.