Us Copper Tariffs Commerzbank

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Us Copper Tariffs Commerzbank

Closer Look At Us Copper Tariffs

senior commodity analyst from Commerzbank has highlighted that the US tariffs are only for the semi-finished copper products.

So, the tariffs on the copper are not as bad as the markets were initially making them out to be. Now that we have the clarity over the issue, we can also expect some changes in the copper prices.

Copper Demand To Decline

Meanwhile, the copper prices remain under pressure as the tariffs are expected to lower the demand. The US government has put tariffs on Copper sheets, rods, and pipes. What's more important is that the tariff on these products is 50%!

At the same time, the tariff will not be applied to refined copper products such as anodes and cathodes. But despite the clarification, the Comex exchange shows a 20% decline in Copper prices.

Meanwhile, the LME showed little change in the copper prices, which makes this whole situation a lot more interesting.

Commerzbank added that the US consumers will continue to purchase the copper products as they normally do. However, the short-term buying of Copper will take a hit due to the build-up of copper reserves ahead of the tariffs.

In simple words, a lot of firms bought Copper products in advance to prepare for the tariffs. As a result, we can expect a slowdown in the purchase of copper in the short term.

In addition, Commerzbank believes that the demand for domestically produced Copper will increase in the near future. But it remains to be seen if the US-produced Copper will be more affordable than imported copper with tariffs.

But even if the domestic production is used, it would still not be enough to cover the demand of a country like the USA. So, the bottom line is that the copper demand will take a hit due to higher tariffs from the USA.

How that would effect the Copper prices in the long term remains a question that only time will answer.

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