President Donald Trump's decision to impose tariffs on copper imports to the US prompted traders around the world to rush metal shipments into the country throughout most of the year. There are now only a few weeks left before the 50% duty takes effect. Bloomberg reports on signs of a decline in US copper demand.
Sam Desai of RM-Metals said his company reduced its red metal purchases by 25% after the tariff hike was announced. Customers awaiting the introduction of duties are approaching copper purchases with caution. Additionally, consumers now have the opportunity to use stockpiles accumulated at the beginning of this year instead of placing new orders with distributors.
Industry representatives surveyed by Bloomberg also noted the lack of official information on which copper products will be subject to tariffs. Aviva Metals has stated that due to this uncertainty, it is impossible to make real business decisions.
Rising inflation adds to the ambiguity, as it could force the US administration to abandon the tariffs, Bloomberg says.