Goldman Sachs: Doubling of steel and aluminum tariffs may impact the copper market.

The Goldman Sachs commodities research team stated in a research report that US President Trump announced that the US will double the import tariffs on steel and aluminum to 50% starting from Wednesday, raising the possibility of imposing tariffs on copper imports. The team pointed out that the US is conducting an investigation into copper imports under Section 232. The team stated, "However, any future US investments in copper may potentially receive some form of tariff exemption, which could disrupt the current tariff pricing." Last Friday, the December copper futures contract had a 12% premium over the global benchmark copper price in London. The team estimated that this means that if tariffs of 25% and 50% are respectively imposed, the price of copper per ton will increase by $1235 and $3605.