US President Donald Trump has hinted at imposing a 25% levy on copper imports, which could bolster copper prices. The announcement comes as US manufacturers stock up on copper ahead of potential tariffs, leading to increased demand.
President Trump stated that the Commerce Department will investigate the impact of copper imports due to national security concerns. China’s dominance in the global copper market is a key factor in this probe. This investigation supports the bullish case for copper.
The S&P GSCI Copper and Bloomberg Copper Subindex have risen over 10% so far this year, accompanied by increasing futures prices on the New York trading floor. Traders are pricing in higher tariffs as they become more optimistic about future trade disruptions.
Analysts believe that copper exposure is an ideal time given the long-term US trend towards electricity for energy needs. For investors seeking exposure to copper miners, two ETFs worth considering are Sprott Copper Miners ETF (COPP) and Sprott Junior Copper Miners ETF (COPJ).
COPP provides broad coverage of large-, mid-, and small-cap mining companies, offering diversification benefits. COPJ tracks the Nasdaq Sprott Junior Copper Miners Index, providing exposure to equities with high growth potential.
Investors should carefully consider investment objectives, risks, charges, and expenses before investing in these funds. A Prospectus is available upon request for more information.
Source: https://etfdb.com/gold-silver-investing-channel/trump-tariffs-boon-bullish-copper-prices