By The move: US mining firm Freeport-McMoRan jumped over 4% in early trading on Wednesday, rising to an intraday high of $38.89. The move nudged the shares into positive territory year-to-date.
The chart:
Why: The stock gained ground after hours on Tuesday following President Donald Trump's announcement that the administration would consider possible tariffs on copper.
White House advisors presented Tuesday's directive as an effort to curb competition from China and a way to strengthen domestic production.
"American industries depend on copper, and it should be made in America, no exemptions, no exceptions," Commerce Secretary Howard Lutnick said. "It's time for copper to come home."
As with Trump's previously announced steel and aluminum tariffs, taxing copper imports will likely push back againt lower-priced foreign competition. That should also give domestic companies more opportunity to raise prices, boosting profits.
Though Freeport-McMoRan operates internationally, its website lists seven open-pit copper mines it runs in the US. Over the past year, the mining giant has been focused on boosting copper production by as much as 800 million pounds yearly
What it means: The move is an example of how Trump's "America first" trade policy could benefit domestic producers.
But while the tariffs could be positive for the domestic metals sector, implemented copper tariffs could amplify costs across several segments of the economy. Copper has a broad range of uses, and its cost is an input in the price of everything from electronics to construction materials.
Trump's tariff probe sparked a surge in copper futures, which rose 1.76% Wednesday morning.
A global shortage of copper, Chinese stimulus, and increased demand from AI data centers have been cited as reasons for the metal's record surge last year.
For Freeport-McMoRan, this has translated to stock highs of as much as $54.23 last year, though shares slid early in 2025 amid macroeconomic headwinds.
What the pros are saying: In a note on Tuesday, Goldman Sachs outlined that copper prices would breach annual average price reocrds in 2025 and 2026 in nominal terms, reinforcing the growth of new mines through the end of this decade.
"Our new annual average forecasts of $9,740/t for 2025 (vs. $10,160 prior) and $11,175/t for 2026 are above the forwards, and we expect deficits of 180kt and 250kt in 2025 and 2026," the note said.
According to ING, the US imports 45% of its copper.
