Copper prices surged to record highs overnight while ASX miners fell and pharmaceutical stocks wobbled, as US President Donald Trump intensified his tariff campaign with new threats aimed at critical global supply chains.
On Tuesday US time, Trump confirmed a 50% tariff on imported copper and flagged a proposed 200% tariff on offshore-manufactured pharmaceuticals — the latter would come with a one-to-two-year implementation window to give companies time to reshore production.
The mixed response across sectors highlighted growing investor uncertainty, as price shocks clashed with demand concerns and geopolitical risk — though analysts note that markets are increasingly taking Trump’s tariff threats in stride.
Copper spikes, but ASX miners slump
Copper futures jumped as much as 17% in New York to an all-time high of US$5.8955 per pound overnight, before closing up 13.1% — the largest single-day gain since 1989. Trump said he would impose the 50% tariffs, double what had previously been expected, within weeks, although he did not specify an exact date.
The rally was fuelled by fears that one of the world’s biggest copper importers could choke supply with its new tariff regime.
But the reaction in equity markets told a more cautious story. Shares in Sandfire Resources dropped as much as 11% in early trade Wednesday before closing 5.6% lower at $10.93. Peers including 29Metals and Hot Chili also fell around 4–5%.
Analysts pointed to the disconnect between spiking commodity prices and the long-term demand outlook, particularly if industrial usage slows in the US, which imports about half its copper needs.
The Global X Copper Miners ETF in New York, a sector barometer, ended just 0.7% higher despite a brief 3.2% rally.
Pharma under review, but investors stay calm
Treasurer Jim Chalmers said the federal government was “urgently seeking” details about how the new tariffs would affect Australia, called the proposal for pharmaceuticals in particular “very concerning” given the industry’s greater exposure to the US market.
Biotech giant CSL Ltd dipped 0.3% to $245.22 amid renewed scrutiny of the pharmaceutical sector in the context of threatened tariffs. The company has US manufacturing facilities, but some of its plasma and vaccine products are imported and could fall within the scope of Trump’s proposed 200% tariff.
Despite the rhetoric, global pharma markets remained steady. The S&P pharma index and Nasdaq biotech index each closed up 0.85%, with investors seemingly betting that the proposed levies may be watered down or delayed.
Markets take a measured view
Broader market reaction in the US was restrained. The Dow slipped 0.4%, the S&P 500 edged down 0.1%, and the Nasdaq finished flat. US bond yields were mixed, with the 10-year up 1 basis point to 4.40% and the 2-year yield easing to 3.90%.
White House officials continue to flag the potential for more trade agreements before the August 1 enforcement deadline, while Trump has insisted there will be no further extensions.