Freeport-McMoran shares rise on copper tariff probe news

Published 25/02/2025, 22:30
© Reuters.

Investing.com -- Shares of Freeport-McMoran (NYSE: FCX) climbed 6% following President Donald Trump’s announcement of a new commerce probe that could lead to tariffs on copper imports. This action is seen as a potential boon for domestic copper producers like Freeport-McMoran, as it may increase demand for locally sourced copper.

The investigation, ordered under Section 232 of the Trade Expansion Act of 1962, is the same legal mechanism used by Trump to impose tariffs on steel and aluminum. The White House believes that imposing tariffs on copper could rebuild U.S. production of the metal, which is crucial for various industries including electric vehicles, military hardware, semiconductors, and consumer goods.

Commerce Secretary Howard Lutnick stated that the U.S. copper industry has suffered due to global competition and that the probe into possible tariffs is a step towards revitalizing domestic production. Lutnick emphasized the importance of copper to U.S. industries and national defense, advocating for its production to be entirely based in America.

The White House official highlighted concerns over China’s attempts to dominate the global copper market through state subsidies and economic influence. The probe will also explore the impact of imports of raw mined copper, copper concentrates, copper alloy, scrap copper, and derivative products on national security.

The announcement comes as part of President Trump’s broader strategy to protect the U.S. economy with tariffs and to revive the manufacturing sector. The administration is also proceeding with separate 25% tariffs on imports from Mexico and Canada, set to take effect on March 4, despite ongoing negotiations.

The markets have responded positively to the news, as Freeport-McMoran’s stock surge reflects investor optimism about the potential benefits of new tariffs for the U.S. copper industry. However, no specific tariff rates have been determined yet, as they will be decided upon the conclusion of the investigation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.