Copper markets saw heightened volatility this week after renewed U.S.–China trade tensions rattled investor confidence. Comments from former President Donald Trump, suggesting new tariffs on Chinese imports, sparked an immediate pullback in copper futures. The remarks came just as the metal was gaining momentum from AI infrastructure spending and electric vehicle demand two of the fastest-growing sources of copper consumption globally.

The temporary slump underscores copper’s dual role as both an industrial and geopolitical asset. As a key input for EVs, renewable grids, and semiconductor wiring, copper is at the heart of the ongoing energy and AI revolutions. Yet, its price remains highly sensitive to trade rhetoric and policy shifts. Analysts say that while short-term volatility may persist, the long-term fundamentals remain bullish, driven by chronic underinvestment in mining and persistent supply bottlenecks in Latin America and Africa.