FTSE mining giants Anglo American PLC (LSE:AAL), Rio Tinto Ltd (LSE:RIO), Glencore PLC (LSE:GLEN) and Antofagasta PLC (LSE:ANTO) rebounded on Thursday morning, as copper prices rose and Donald Trump firmed up his plans for a 50% copper tariff.
The sector has seen falls across the board the day before, after the US President first floated the copper tariff idea.
But today saw a wide risk-on approach for London's blue-chips, with 3%-plus gains for the heavyweight miners leading the index's 79-point early drive higher.
Overnight, President Trump confirmed that the 50% copper tariff will come into place on August 1, while also escalating 'reciprocal' tariffs for Brazil to 50%.
US copper futures advanced 13% initially, the largest single-day rally on record, to lift prices to record highs, the metal saw gains pared but added further gains on Thursday morning to $558 per lb.
"The 50% rate is designed to encourage mining and smelting in the US, but it is unclear whether this tariff will reach its aim," said Kathleen Brooks, head of research at XTB.
"The metals market has front-run expected tariffs from the US, and metals traders have sent record volumes of copper to the US in recent months."
She noted that although the price of copper futures listed in the US surged, the price of spot copper fell.
"If shipments of copper are subject to the 50% tariff rate, this could push up prices of the metal in the US. However, if those shipments are diverted from the US to elsewhere, then it could boost supply outside of the US and weigh on prices. Hence, the divergence," she said.