BMI: It is possible that President Trump's 50% copper tariffs may be revoked at some point.

LME copper fell due to Trump's imposition of a 50% tariff on copper imports. Market observers expect the tariff to dampen the previously high demand for US imports. However, research firm BMI under Fitch Ratings believes that the economic rationale for the tariff is not clear and may be revoked at some point. The firm's analysts believe that the tariff will raise domestic prices in the US, damage the competitiveness of American manufacturing companies, and will not significantly reduce the country's import dependency. Trump may withdraw this latest threat, although the timing of any withdrawal is unclear. Another withdrawal would reinforce the view that Trump always compromises on tariff issues, which could lead to painful unexpected consequences once he actually takes action.