Trade War Fallout: The Copper Bubble Bursts Amid Global Tensions

Copper prices have plunged dramatically this week, marking their steepest decline in years as escalating trade wars fuel fears of a global recession. On Friday, copper prices dropped over 7%, falling below $9,000 per tonne on the London Metal Exchange and $4.478 per pound on COMEX. This marks a sharp reversal from record highs seen in March when copper traded above $5.20 per pound.

The selloff was triggered by President Trump’s sweeping tariffs on major economies, including China (54%), the EU (20%), and Japan (24%). In retaliation, Beijing announced a 34% tariff on U.S. imports starting April 10, further rattling markets. Mining giants like Freeport-McMoRan and Glencore saw stock declines exceeding 10%, reflecting investor concerns over reduced demand for industrial metals.

Analysts warn that copper prices could fall another 8–10% in the coming weeks if trade tensions persist.

Source: Bloomberg, Mining.com, Rio Times