Hindustan Copper slumps 4% as Trump announces 50% tariff on copper imports; other metal stocks slip too

The move is aimed at boosting US production of a metal critical to electric vehicles (EVs), military hardware, the power grid and many consumer goods.

Reacting to the announcement, US Comex copper futures jumped more than 12% to a record high on Tuesday as tariffs came earlier than the industry had expected, and the rate was steeper, per reports.

Last seen, the NIFTY METAL index was trading at 9,351.45 levels, down 1.74%. Out of 15 constituents, 14 were trading in the red and just one in the green.

The top losers on the index were Hindustan Copper (down 4%), SAIL (down 1.73%), Tata Steel (down 1.70%), and Jindal Stainless (down 1.46%).

Copper prices have been on a rising spree on increased demand. Copper is experiencing a significant increase in demand, mainly driven by the global shift towards renewable energy, electric vehicles (EVs), and digital infrastructure.

This surge in demand is creating a tightrope walk for the copper market, with supply struggling to keep pace. Several factors are contributing to this increased demand, including infrastructure development, urbanisation, and investments in clean energy projects, say news reports.

In April 2025, Vedanta Group chairman Anil Agarwal said young Indian entrepreneurs and investors have a "great opportunity" in the copper sector, calling it the "new super metal" that will power the future of technology and infrastructure.

His comments came amid a global pivot towards copper as the biggest firms race to add the red metal to their portfolios in anticipation of looming shortages.

Barrick Gold Corp., the world’s second-largest gold producer, is proposing to rebrand itself as Barrick Mining Corp., signalling a strategic shift from bullion to base metals.

In a post on social media platform X, Agarwal said, “The world's second-largest gold producer, Barrick Gold, is rebranding to just Barrick. That is because it sees its future in copper.”

“Copper is the new super metal which is being heavily used in every advanced technology, whether EVs, renewable energy infrastructure, AI or defence equipment,” he said.

“Globally, copper mines are being revitalised, and new smelters are being built. India has tremendous potential in critical and transition metals. A great opportunity for young entrepreneurs and investors. Let's make it a mission,” he added.

What analysts say

Morgan Stanley analysts, according to a news report, said in a note on Tuesday the proposed tariffs would support higher copper prices in the US as the cost of bringing the metal into the country increases, but they noted this would likely be a short-term rise as the domestic inventory grows.

Bloomberg reported that Juan Carlos Guajardo, the founder of the mining and metals market consultancy firm Plusmining, said that the price of copper will rise “significantly” because the market anticipated a lower tariff rate and there will be “a lot of buying” before the levies go into effect.

Analysts at Bernstein, in a note hours before Trump’s announcement, forecast rising copper prices through the end of the year, citing an “expectation” among copper traders that Trump would introduce tariffs on the metal as “inventories are shifting to US warehouses", Forbes reported.