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HG00
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20 days

Popular copper trade comes to a sudden stop as Trump’s import tariff won’t include refined copper - MarketWatch

1. Trump imposes 50% tariffs on specific copper imports starting Aug. 1. 2. Comex copper prices plunged by 19.5% post-announcement, erasing price spread. 3. U.S. copper prices were previously at a 28% premium over LME prices. 4. This will likely shift focus to global copper market fundamentals. 5. Concerns arise over slow growth in China and struggling European economy.

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FAQ

Why Very Bearish?

The recent tariff has significantly decreased Comex copper prices, fundamentally altering market strategies. Historical examples show that tariff announcements often destabilize commodity prices, and excessive inventory will pressure prices further.

How important is it?

The tariff announcement is crucial for HG00 as it directly impacts copper pricing and trading strategies, affecting market participants' decisions significantly.

Why Short Term?

The immediate impacts from the tariffs and inventory surplus will affect prices quickly, much like previous tariff announcements impacted short-term trading strategies.

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