London’s FTSE 100 index reached an unprecedented peak on Thursday, buoyed by a sharp rebound in mining shares after the United States confirmed it would introduce a 50% tariff on copper imports from August.
This policy move, designed to support the American mining industry and reduce reliance on foreign copper—particularly from major exporters such as Chile—has triggered a wave of activity across global commodity markets.
Shares in London-listed mining heavyweights saw notable gains, with Anglo American up by around 5% at midday, while Rio Tinto and Glencore both advanced approximately 4.5%, and Antofagasta rose by 3%. This rally marks a reversal of fortunes for the sector, which had underperformed earlier in the year due to operational setbacks and uncertainty over global growth prospects.
The copper market has been particularly volatile, with prices reaching record highs. The premium paid by American buyers has widened considerably compared to other regions, displaying concerns about future supply. Analysts note that while the new tariff could benefit U.S.-based mining companies by boosting domestic prices, it introduces considerable uncertainty for global producers, especially those with operations in South America.
The surge in copper prices is also underpinned by robust demand from sectors such as renewable energy and electric vehicles, both of which rely heavily on the metal. According to analysts, a broad price spike may be beneficial to producers in the short-term. However, the longer-term impact remains uncertain, as the U.S. is unlikely to ramp up domestic production quickly enough to offset its reliance on imports, keeping pressure on prices.
Sentiment towards mining shares has also been lifted by positive economic signals from China, the world’s largest consumer of copper. Recent data showing increased sales of construction machinery suggest that Chinese demand for industrial metals remains strong.
Further optimism has been fuelled by expectations that the U.S. Federal Reserve may cut interest rates later this year, which would typically encourage investment in riskier assets, including commodities and mining equities.
There is also growing optimism that the European Union and the United States could reach a framework trade agreement before the week’s end, which would help to stabilise transatlantic trade relations and further boost market confidence.