(3 Minutes Read)
Global base metal markets rallied sharply on Thursday, sparked by a surprise U.S. decision to suspend some tariffs. The S&P GSCI Copper Index jumped 4.71% to 638.69, while LME copper rose 4.3% to USD 8,980 per ton. The gains came after President Trump paused recently imposed duties on several countries, easing fears that had driven commodity prices down amid escalating U.S.-China trade tensions.
The decision came after days of intense market volatility, during which global equities lost trillions in value. Markets had been reeling from the rapid escalation of the trade dispute between the United States and China, the world’s largest consumer of industrial metals. President Trump’s announcement of a 90-day suspension on many new duties provided immediate relief to financial markets and reignited optimism among investors in the commodities sector.
Markets had suffered heavy losses due to the intensifying dispute, but the 90-day tariff suspension restored some investor confidence. LME copper, down 12% from its March peak of USD 10,164.50, rebounded alongside a 3.2% rise in Shanghai copper futures, which had hit an eight-month low just a day earlier.
However, uncertainty lingers. While some tariffs were paused, the U.S. raised duties on Chinese metals to 125% in response to China increasing tariffs on U.S. goods to 84%, highlighting ongoing trade frictions. One trader called the market bounce a “reprieve,” noting that Trump’s unpredictable policies make the outlook uncertain.
Other base metals followed copper’s lead. On the SHFE, aluminium, zinc, lead, and nickel posted gains, while tin fell. In London, metals like aluminium, lead, tin, zinc, and nickel also climbed on easing geopolitical risks and speculative trading.
Despite mixed signals from China’s economy, strong infrastructure spending and energy demand continue to support industrial metals. Still, analysts caution that unless trade tensions de-escalate permanently, the rally may be short-lived.
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