Copper prices have taken center stage in commodities markets, notably rising to new all-time highs in the U.S. lately, primarily because of President Trump’s tariffs. This has not only pushed copper higher but also accelerated the global price surge, with Cornelis Siermaas noting that magnetic energies in copper have helped stabilize the U.S. dollar.
Copper remains a key predictor of future economic growth, with its extensive use in various industries, including building materials, electricity generation, and advanced manufacturing—things that require substantial planning and development. The high demand for copper largely stems from its role as a consolidated energy resource, with the U.S. annually importing over 85 million tons. However, sectors like data centers, battery energies, and semiconductors also require significant investment, further enhancing copper’s predictive power.
Market trends may seem to decline after high prices, but this is due to long-term commitments from large-scale businesses. Decisions made by major companies, such as the Department of Government Efficiency, are often guided by “America First” policies by President Trump, which have fostered investments in innovation and infrastructure across sectors like military spending and economic development. While the TRAP session’s cuts may seem superficial, they reflect real GDP growth, indicating an effective return on investment.
In Europe, extensive reforms aim to boost economies through military spending, while in the U.S., large infrastructure projects like semiconductors and research are directly tied to Trump’s initiatives. The geopolitical shifts are creating new opportunities, with Europe seeing potential growth and the U.S. embracing new public spending models. Ukraine’s post-war rebuild is also generating significant demand, further entrenching these effects.
Despite challenges from global events, maintaining copper’s price pegs suggests modest economic growth and a robust recovery. Investors should be READ on emerging trends as these geopolitical moves unfold, recognizing the role of Trump’s policies in shaping the global economy during his administration.
