On Thursday copper prices climbed to unprecedented levels, climbing past $10,000 per tonne. The main reason for this sharp increase is linked to trade disruptions caused by the aggressive tariff policies of US President Donald Trump. In the previous month it was President Trump who gave the order to the Commerce Department to take a closer look at how much copper the country brings in. This action is generally interpreted as the first step towards imposing additional charges on copper. With the expectation of these extra charges looming, traders made quick moves to send more copper to the U.S. Their goal was to get ahead of any new tariffs. This rush has led to a tight squeeze on copper available worldwide.

In the midst of growing trade disagreements the government in China has started initiatives to strengthen buying power within its own borders. During the weekend authorities in China shared details of a new strategy focused on boosting the spending habits of consumers by raising their incomes. It appears that the hard work invested in this program is already yielding results. This becomes evident when you notice retail sales have already soared by 4% since the start of the year. An increase in purchasing activities has played a pivotal role in mitigating the impact of the tariffs laid down by President Trump on imports from China.

The ups and downs seen in copper prices are just a small piece of the much bigger storm stirring in the economy. This storm came about because President Trump has been working hard to change how trade between countries works and to make sure certain parts of the American economy are safer. Beyond copper; a 25% tax on the importation of steel and aluminum has been put in place by Trump alongside tariffs on goods coming from Canada Mexico and China. Moreover he made it known that there will be big tariffs set up to start next month and these will work both ways.

The changes in policy are having a big impact on how goods are traded around the world and their value. With the rise in copper prices, industries globally are dealing with higher expenses and less certainty about getting the metal they need. As U.S. trade policies keep changing it seems they will keep affecting the markets, gold for instance has also been climbing fast. This means those involved will have to keep a keen eye on these changes and tweak their plans to keep up.