Goldman Sachs: Doubling of steel and aluminum tariffs may affect the copper market

Golden Ten Data on June 2, Goldman Sachs commodity research team said in a research report that U.S. President Trump announced that the United States will double steel and aluminum import tariffs to 50% from Wednesday, which raises the possibility of tariffs on copper imports. The team noted that the U.S. is conducting an investigation into copper imports under Section 232. “However, any future U.S. investment in copper is likely to receive some form of tariff exemption, which could undermine full tariff pricing,” the team said. On Friday, the December copper futures contract traded at a 12% premium to the global benchmark copper price traded in London, which the team estimated would mean an increase of $1,235 and $3,605 per tonne if tariffs of 25% and 50%, respectively, were imposed.