
The tariffs introduced by former President Donald Trump on copper and aluminium are still making waves in the U.S. economy. While these tariffs were intended to protect U.S. industries by raising the cost of imported metals, they have also led to an increase in the prices of everyday products. Items like cars, electronics, appliances, and even construction materials are seeing higher prices due to these tariffs, which have driven up production costs for manufacturers who depend on these metals.
This price hike is particularly concerning for U.S. consumers already dealing with inflation. As manufacturers face higher costs, they pass them on to consumers, making everyday goods more expensive. For instance, buying a new car or upgrading home appliances has become pricier, adding to the financial strain on American families.
On a broader scale, these tariffs also affect global markets, including commodity exchanges like the MCX (Multi Commodity Exchange). When the U.S. imposes tariffs, it impacts the supply and demand for copper and aluminium, which in turn drives up prices on the global market. This makes trading in these metals more unpredictable, affecting not only U.S. manufacturers but also international players in the market.
Manufacturers, particularly in sectors like automotive and electronics, have expressed concerns about these ongoing tariffs. They argue that foreign companies, who don’t face similar tariffs, are able to sell their products at a lower cost, putting U.S. businesses at a competitive disadvantage. Many have called for the tariffs to be reduced or removed, hoping to lower production costs and avoid passing even higher prices onto consumers.
The Biden administration has yet to make significant changes to these tariffs, though there is ongoing discussion about how to strike a balance. While protecting U.S. industries remains a priority, there’s also pressure to ease the financial burden on consumers and stabilize the market. Adjusting these tariffs could help reduce inflationary pressures and provide relief to U.S. households. In conclusion, while the tariffs on copper and aluminium were originally intended to strengthen U.S. industries, they are now contributing to rising costs for American consumers. With higher prices on essential goods and market instability, there’s growing conversation about revisiting these tariffs to find a better balance between protecting domestic industries and lowering the costs consumers face.
Chart Analysis Copper:
Copper is currently trading between the support levels of 824-825 and the resistance at 836 on the MCX. The support zone (824-825) has held up well, meaning that whenever the price approaches this range, it tends to find buying interest, making it a good area for potential long positions. However, if copper breaks below this level, it could signal further downside. On the other hand, 836 is acting as the resistance, where the price has struggled to break through. If copper rises towards this level, selling pressure might push the price back down. A breakout above 836 could indicate bullish momentum, pushing copper to higher levels, while a failure to hold support at 824-825 could lead to further declines. Currently, copper is range-bound, and traders are watching these key levels for potential moves.

Chart Analysis Aluminium:
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Currently, aluminium is stuck between the 237 support and the 257-259 resistance zone, showing signs of a potential reversal. If it fails to break above 259, further downside could occur, pushing the price back towards 237. The next key move will depend on whether it holds support at 237 or breaks the 257-259 resistance.

Until then, Happy Trading!
Commodity Samachar Securities
We Decode the Language of the Markets
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