Copper Price Plunge Triggers Mining Sector Selloff Amid Tariff Concerns

On Friday, April 4, 2025, global financial markets experienced significant turmoil following the announcement of sweeping tariffs by U.S. President Donald Trump. The tariffs, which include a 25% duty on aluminum imports and the threat of similar measures for copper, have sparked fears of a global recession and led to a broad market selloff.

Impact on Copper Prices

The prospect of increased tariffs has had a pronounced effect on copper prices. The London Metal Exchange (LME) index dropped 6% in response to escalating trade war concerns. Specifically, copper prices fell to a three-month low, reflecting the market’s anxiety over potential disruptions in global trade and reduced demand from key consumers, notably China.

Mining Sector Performance

The decline in copper prices has significantly impacted mining stocks, making the sector one of the worst performers amid the market downturn. Major mining companies experienced sharp declines:

• Glencore: Shares fell by 9% in London trading.

• Anglo American: Experienced a nearly 7% drop.

• Freeport-McMoRan: U.S.-listed shares plummeted almost 12%.

• BHP Group: Recorded losses exceeding 8%.

• Rio Tinto: Shares declined by approximately 4%.

The Global X Copper Miners ETF (COPX), which tracks the performance of copper mining companies, also reflected the sector’s downturn. As of the latest data, COPX traded at $32.67, down 10.3% from the previous close.

Analyst Insights

Analysts express concerns that the newly announced tariffs could dampen global demand for raw materials. Jefferies analysts noted that U.S. buyers might retreat from the market due to increased costs of metals impacted by tariffs. Furthermore, Deutsche Bank forecasts that top mining companies will suffer due to a significant decline in metals prices, driven by an industrial slowdown in China, the U.S., and Europe.