So, a 50% tariff on imported copper now. This highlights the potential, according to EPIC Investment Partners, for the US to isolate itself rather than strengthen its industrial base, especially given copper’s fundamental and increasingly critical role in global electrification, technology advancement and the infrastructure underpinning modern life. Market-wise, this only caused ripples through global markets.
Copper is one thing, but ‘no, not the coffee’! Coffee futures jumped on Thursday after Trump threatened 50% tariffs on Brazil, the world’s biggest producer of Arabica coffee. This risks a price surge for US consumers.
Trump has now threatened Canada with a 35% tariff and has floated the idea of universal levies. He’s sent letters out to numerous trading partners this week, and it is expected that similar communications will be sent out to EU nations soon.
Markets are remaining resilient, and so we thought we should explore what could possibly derail markets over the summer, traditionally a period of low volume trades.
Opportunities are presenting themselves, and data centre infrastructure is a case in point. We also explore the case for accommodating healthcare across portfolios for a longer-term investment.
This week’s content:
- How to lose friends and alienate people
- No, not the coffee!
- Should we be worried about a summer sell-off?
- He’s whining like a baby
- Data centre infrastructure to be in high demand
- The attractions of healthcare
- Summary
How to lose friends and alienate people
Although Trump has announced a 50% tariff on copper imports, the countries that export copper are confident of alternative markets, particularly towards the Far East. As someone said to me yesterday, “surely this just plays into China’s hands.”
EPIC Investment Partners encapsulated what’s happening. Chile is the world’s leading copper producer, and the US plays just a minor part in its overall export strategy. The Chilean foreign secretary stated, “Chilean copper will keep finding new markets,” emphasising that the US “doesn’t have the capacity to replace the copper it imports.” Chile’s diversified export base means that even with a 50% tariff, the vast majority of the nation’s copper production remains unaffected, allowing it to pivot supply to other eager global markets.
The US, by contrast, remains significantly import-reliant, bringing in 850,000 tonnes of refined copper in 2024, about half of its total consumption. Despite domestic production of 1.1 million tonnes, the US lacks sufficient refining capacity, operating only two primary smelters and facing years-long regulatory hurdles for new mining infrastructure.
Continues…
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