Asian Market Struggle as Trump Expand Tariff War, Copper Hits Record High
The cautious sentiment followed President Donald Trump's 50% tariff on copper and his suggestion of a further round of tariffs on semiconductors and pharmaceuticals. The president also doubled down on his August 1 deadline for trade deals, reversing earlier suggestions of flexibility. His mixed signals left markets unclear on what to expect next.
Trump Tariffs Rattle Another Market: Copper Hits Record High
In U.S. trading, copper futures surged more than 10% to a record high on Trump's announcement. Copper is essential for electric vehicles manufacturing, military applications, and power systems. But futures in London and Shanghai fell, suggesting that exporters may not have time to fully adapt to the new policy.
Trump also proposed a 200% tariff on imported drugs, although implementation might be delayed for a year.
Wall Street Weakens, Dollar Surges
Wall Street stocks continued to slide. U.S. S&P 500 futures slipped 0.1% after the main index fell another 0.1% on Tuesday, extending a 0.8% decline from earlier in the week. Trump said trade talks with the EU and China are "going well," but reiterated his intention to send a tariff letter to the European Union.
The U.S. dollar rose to its highest level since June 20 in trading at 147.19 yen. The dollar index rose to 97.602. The euro fell to $1.1715, while the pound was unchanged at $1.3591.
Oil and Gold Tumble as Markets Prep for Impact
Gold prices declined 0.3% to $3,292 an ounce, following a steeper 1% fall on Tuesday. The stronger dollar weighed on the metal. Oil also retreated from recent advances. Brent crude fell 22 cents to $69.93 a barrel. The price of U.S. crude fell 23 cents, or 0.3 percent, to $68.10.
After only two completed U.S. trade deals—with Vietnam and Britain—since Trump's "Liberation Day" tariff announcement in April, question marks are plentiful. Now, investors are steeling themselves for further policy changes as the August deadline nears.
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