Copper tariffs, changing timeline position markets for more volatility

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President Trump yesterday threw markets another tariff-related curveball.

Trump ordered a probe into placing levies on copper imports, a move he hopes will help rebuild domestic metal production. 

Copper is a key material for electric vehicles, military infrastructure and consumer electronics, Trump said in his Tuesday executive order. 

Foreign dominance of copper exports “coupled with global overcapacity and a single producer’s control of world supply chains, poses a direct threat to United States national security and economic stability,” the order read. 

The move once again pushed investors into a risk-off mindset, helping to stabilize gold prices and increase interest in other safe haven assets. Copper futures were also on the rise, with those traded on the Comex gaining as much as 5% today. 

Trump issued the order using Section 232 of the Trade Expansion Act, the same law he used back in 2017 to slap 25% tariffs on aluminum and steel imports. 

To further complicate things, Trump this afternoon apparently gave two different dates for when tariffs against Canada and Mexico will begin, first saying March 4 and later saying April 2, according to a report from Bloomberg. 

As I’ve said before, this market is just waiting for the other tariff shoe to drop — and the changing timeline isn’t helping calm the waters in the meantime. 

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