Freeport-McMoRan, Southern Copper Stocks Gain As Trump Eyes Tariffs – Retail Sentiment Improves

Shares of copper miner Freeport-McMoRan Inc. (FCX) jumped by over 4% during morning trade on Wednesday after Reuters reported that President Donald Trump has ordered an investigation into potential new tariffs on copper imports, lifting retail sentiment.

He has reportedly taken this step to rebuild U.S. production of a metal critical to electric vehicles, military hardware, the power grid, and many consumer goods.

White House trade adviser Peter Navarro told Reuters that the investigation would be completed quickly, "in Trump time."

He said China uses state subsidies and overcapacity to undercut competition and gain control of the global copper market, drawing comparisons to its dominance in steel and aluminum.

The news also lifted Southern Copper Corp. (SCCO), which gained nearly 2.5%.

Trump has reportedly signed an order directing Commerce Secretary Howard Lutnick to initiate a national security probe under Section 232 of the Trade Expansion Act of 1962. 

The same law was used in his first term to impose 25% tariffs on steel and aluminum imports.

"Like our steel and aluminum industries, our great American copper industry has been decimated by global actors attacking our domestic production," Lutnick said at the White House signing ceremony. 

He pledged to end unfair trade practices that have harmed American workers.

The investigation, which also involves the U.S. Trade Representative’s office, will assess imports of raw mined copper, copper concentrates, copper alloy, scrap copper, and derivative products. 

On Stocktwits, retail sentiment around Freeport’s stock climbed into the ‘neutral’ zone from ‘bearish’ a day ago, along with a marginal uptick in chatter. 

Retail sentiment around Southern Copper's stock also improved, jumping into the ‘bullish’ territory from ‘bearish’ a day ago, but chatter remained subdued.

Freeport-McMoRan’s stock has traded flat over the past year, while Southern Copper has gained 21% over the same period.

Since returning to the White House last month, Trump has escalated trade restrictions, which have been causing volatility in the broader market.

The administration’s aggressive tariff strategy is also beginning to weigh on consumer confidence. 

The Conference Board reported Tuesday that U.S. consumer sentiment posted its sharpest decline in three-and-a-half years, with households increasingly concerned about inflation.

While a 10% levy on all imports from China is currently in place, 25% duties on goods from Canada and Mexico are set to take effect next week. Additional tariffs targeting steel, aluminum, and motor vehicles are also in development.

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