Copper ETF Hits All-Time High Amid Tariff Threats
The tariff play that has roiled stocks and commodities reaches CPER.
Copper is the latest commodity in the Trump administration’s tariff crosshairs, pushing futures to all-time highs and boosting exchange-traded funds that track the metal.
In a move that further stokes inflation concerns, President Donald Trump may levy duties on copper imports in a matter of weeks, Bloomberg reported, citing sources familiar with the matter. That’s an accelerated timeline for the proposed 25% duties on all imports of the critical metal.
Copper ETFs Jump
Copper futures early Wednesday jumped more than 3% to a record $5.37 a pound, as tracked by Comex.
The biggest copper ETF rose to another record: The $200.7 million United States Copper Index Fund (CPER) jumped more than 3% before paring gains midday Wednesday. It’s gained 30% so far this year.
The USCF Daily Target 2X Copper Index ETF (CPXR), launched in January aiming to double the returns on copper futures, also climbed to another record. It’s jumped 45% since it began trading.
Source: etf.com
Trade War Stokes Inflation Fear
Copper is the latest import eyed for protectionist measures by the Trump administration, which has launched trade wars with much of the world, including U.S. allies like Europe and Mexico as well as adversaries like China. The mix of threats and actual duties on steel, aluminum and wine imports, aimed at boosting American industry, has sparked reciprocal tariffs from trading partners.
Those moves raised fears of inflation and recession in the U.S. While narrow markets such as copper have jumped this year, broad stock indexes have sagged along with consumer confidence.
The trade war has mostly helped U.S. partners’ stock markets, as U.S. industries rely on imports of raw materials. Chile is the world’s top copper producer, and the $594.8 million iShares MSCI Chile ETF (ECH) has surged 23% so far this year.
Investors have put $18.5 million into CPER from March 13 through March 25. Copper miner ETFs have also gained this year, with the largest, the $2.8 billion Global X Copper Miners ETF (COPX) rising 13%.
