Trump is about to take office! Traders are betting on the possibility of tariffs increasing, causing metal and oil prices in the United States to skyrocket.

Notice that, due to traders increasing their bets on the elected President Donald Trump imposing tariffs on imported goods, US metal and oil prices have soared above international prices. In recent weeks, prices of metals such as copper, silver, and platinum between London and New York have diverged, and there has also been an increase in oil price differences between the US and Canada. With concerns and uncertainties surrounding Trump's global trade policies, the price hikes have created opportunities for traders to purchase cheaper goods overseas and bring them to the US. Citigroup analyst Max Layton stated that the market is digesting the potential increase in tariffs on imported products by the US (whether overall, specific countries, or key minerals). Therefore, analysts recommend using US contracts to hedge against broad tariff risks. The President-elect has hinted multiple times that he will impose tariffs of 10% to 20% on all foreign goods, and tariffs of 60% or higher on products from China. Insiders have reported that Trump's new economic team members are discussing gradually raising tariffs as a gradual approach to increase negotiation leverage while avoiding inflation spikes. In a report on Tuesday, Citigroup analysts wrote that for platinum and copper, the premium of US prices compared to London prices has surged, indicating traders believe there is a 45%-55% chance of imposing a 10% general tariff and/or a 10% tariff on key minerals. They added that for oil and aluminum, price differences reflect potential national specific tariffs that may be imposed on Canada. Analysts believe that even with exemptions, platinum is the metal most likely to be affected by broad tariffs. This is because the US is a large net importer of platinum, with minimal imports coming from countries that have free trade agreements with the US. Platinum is used in catalytic converters for diesel vehicles. Analysts state that since gold and silver are used as legal tender in the US and are not considered key minerals, they may be exempt from widespread tariffs. They added, "Given gold's status as a reserve asset, the likelihood of tariffs being imposed on its imports is extremely low." Analysts suggest that if a 25% tariff is imposed on Canada (including energy), US refiners and consumers may face similar increases in crude oil, gasoline, and diesel prices, especially in areas where there are no alternatives.