Trump tariffs jolt copper, Canada. China cuts diesel - Jul 11, 2025

As of July 11, Reuters reported that U.S. President Donald Trump’s planned 50% tariffs on copper, announced Wednesday, would also cover semi-finished products used in power grids, the military, and data centers, citing people familiar with the matter. The tariffs, set to start on August 1, aim to support domestic development in industries critical to defense, electronics, and automobiles. The White House launched a Section 232 investigation into copper imports in February on national security grounds. Economists warn that these sectoral tariffs, similar to those on steel and aluminum, could drive up costs for American consumers. Among the other relevant developments today, U.S. President Donald Trump announced a substantial 35% tariff on Canadian imports effective August 1, a rise from the previous 25%. This decision threatens ongoing trade deal negotiations and has prompted a strong response from Canadian Prime Minister Mark Carney, who vowed to support Canadian workers. Trump also hinted at implementing similar tariffs of 15% to 20% on other trading partners. Turning to market updates, electric truck sales in China have surged, reflecting a significant shift away from diesel, with a reported 175% increase in sales in the first half of this year. This trend has led analysts to adjust their diesel demand forecasts downward, indicating an earlier-than-expected peak in China's oil consumption. Amidst this backdrop, copper prices drifted lower today due to concerns over tariffs potentially impacting U.S. demand; copper futures displayed mixed movements internationally. Italian energy group Eni and Dubai-based Khazna have signed a preliminary agreement to jointly develop a 500-megawatt data centre campus in northern Italy. Looking at broader macro trends, the EU is bracing for further clarity on U.S. tariff strategies, as internal discussions continue over the best negotiating position. Officials are divided between expediting deals to protect industries like Germany's versus resisting unfavorable terms pushed by the U.S. Furthermore, amidst inflationary pressures, the U.S. State Department commenced layoffs affecting over 1,350 employees as part of streamlining efforts to realign diplomatic priorities, causing concern regarding U.S. global engagement in light of heightened rivalries with nations like China and Russia.