Copper Spikes on Trump’s Latest Tariff Threat

US President Donald Trump rattled a new market Tuesday in his ongoing global trade war, announcing plans to implement a 50% levy on copper. The statement predictably sent copper futures in New York surging to their largest intraday gain in decades. The new threat comes a day after Trump retreated on his promised “reciprocal” tariffs, which he already delayed once before, while announcing new threatened rates for more than a dozen countries. On Tuesday, he insisted this new delay would be the last one.

Consumer expectations for future inflation have returned to pre-tariff levels, according to monthly survey data released Tuesday by the Federal Reserve Bank of New York. The June survey showed median expectations for consumer price increases one year ahead decreased for the second straight month in June, falling back to 3%. Estimates for annualized inflation three and five years ahead remained unchanged at 3% and 2.6%. A series of reports from the federal government over the past four months have shown inflation to be lower than that predicted by economists, who fear Trump’s trade war will reignite price rises.