While Canadian copper miners have largely stated that American copper tariffs will not affect them, some market analysts are thinking how realistic the danger is really.
US President Donald Trump said on Tuesday that he was planning to impose a 50 percent tariff on copper imports, although no possible discounts or any details have been declared yet.
Derek Holt, the head of Capital Markets Economics in Scotiabank, says that the broad market has not responded much to the threat, and it may be that investors are waiting to see that the tariffs are really going to see, and tolerating their stakes before changing their bets.
He notes that the price of copper has already increased in recent years – operated in part by demands from electric vehicles and energy infections – and US tariff moves only increase the cost.
Holt says that there is no sensible argument for tariffs, the cost of which will be paid by American consumers and businesses.
Pierre Gratton, president of the Mining Association of Canada, has also questioned the knowledge of the move that he says that we will harm the manufacturers and help China.