Freeport-McMoRan shares fall as uncertainty over refined copper tariffs reverses a record price rally
Freeport-McMoRan shares fell 8% on Thursday after reports cast doubt on whether the administration will impose a 15% tariff on refined copper products. This uncertainty caused a sharp reversal in the copper market, which had recently reached record high prices. While copper prices had surged due to high demand from the AI boom, electric vehicle manufacturing, and infrastructure projects, the recent rally was heavily driven by a scarcity premium created by tariff expectations. The lack of a definitive decision on refined copper tariffs has led to a quick repricing of the metal and a corresponding decline in the stock prices of major producers. Southern Copper shares fell 7% and Teck Resources shares fell 7% in the same session. Despite the sharp daily drop, the copper mining group remains strong, with Freeport-McMoRan shares up 40% year to date, Southern Copper shares up 42% year to date, and Teck Resources shares up 36% year to date. Global copper mine output declined by 1.1% in the first half of 2026, contributing to a tighter supply and supporting a long-term bullish outlook for the metal.
Sources
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Copper, FCX Stock Plunge On Tariff Report, Surging Yields; Silver, Gold Also Fall
Investor's Business Daily
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The AI boom and tariff uncertainty are pushing copper prices to record highs
CNN
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Copper Stocks Tumble as Tariff Doubt Reverses Record Rally: Freeport-McMoRan Sinks 8%, Teck Resources and Southern Copper Drop 7%
Yahoo Finance