Market Summary & Our Perspective - 7.8.25

Market Summary

Today, President Trump announced a plan for 50% tariffs on copper, indicating later that he would hope to have this into effect by the end of July. The markets reacted with copper futures surging +9.41% and holding there until close. Additionally, the president mentioned a possible 200% tariff on pharmaceuticals and computer chips, but it was unclear exactly when they would be officially announced. Most major indices were down today, as investors continue to find their footing in the current trade environment. The impact of US trade policy is also being felt in markets around the world, with mining nations beginning to feel the sting of the US tariffs on various metals, now including copper.

Our Perspective

The recently announced tariff on copper, and the tariffs that have been established since the beginning of the Trump administration have had increasingly adverse effects on the market. As the US continues to separate itself from countries that we have long had trade relations with, we often ask ourselves what is the real impact? Short term it may look like a rise in copper futures, and an eventual spike in copper prices. Eventually leading to higher costs in home building, technology manufacturing, and could affect a vast array of consumer products. But long term the impact of these tariffs could lead to companies bringing their manufacturing back from overseas, and this has already begun happening with notable names like Nvidia and Johnson & Johnson committing to expanding their American based manufacturing. But at this point in time, it is too soon to tell what the lasting impact of these tariffs will be. And given the current volatility in the market due to this uncertainty, it is clear that staying informed is extremely important. Follow Quantovate AI on LinkedIn and Instagram to stay up to date with our latest market research and opinions on the market.

*The views expressed in this article are for informational and analytical purposes only and do not constitute financial advice. All opinions reflect current market interpretations and are subject to change based on new developments. Quantovate AI is not a registered investment advisor. Please conduct your own research or consult with a financial professional before making investment decisions.