Trump Postpones Tariff Threat, Copper Prices Skyrocket, Gold Under Pressure, and Energy Stocks Take a Beating

TradingKey - U.S. President Donald Trump signed an executive order on July 7 (local time), extending the suspension period of the so-called "reciprocal tariffs," originally set to expire on July 9, until August 1. He also signaled openness to alternative proposals from other countries.

The move initially eased market concerns over a potential escalation in trade tensions. However, shortly after Trump announced plans to impose a 50% tariff on copper imports and tighten tax policies for clean energy, financial markets reacted swiftly — sending copper prices soaring while weighing heavily on gold and solar energy stocks.

COMEX copper futures surged 9.78% on Monday, briefly breaking above $5.8955 per pound, a multi-year high. Shares of Freeport-McMoRan, the largest U.S. mining company, rose 2.5%, reflecting growing investor appetite for resource-related assets. Meanwhile, spot gold fell 1.05%, at one point dipping below $3,300 per ounce, highlighting divergence among investors regarding inflation expectations and safe-haven demand.

The clean energy sector bore the brunt of policy-driven pressure. Shares of solar companies such as SunRun (RUN.US) tumbled, with SunRun falling as much as 11.4% in a single day. Concerns mounted that proposed cuts to related tax credits under the Trump administration could weaken future support for the industry.

[Intraday chart of SunRun stock, source: TradingKey]

Trump’s evolving tariff and energy policies are reshaping market sentiment. While trade tensions have been temporarily defused, the surge in copper prices, cooling outlook for clean energy, and pullback in gold reflect a broader tone of caution in the markets. With the key August 1 deadline approaching, global investors will remain closely attuned to policy developments and their ripple effects across supply chains.

For insight into how top investors are positioning themselves, tracking their holdings in energy stocks may offer valuable clues: Click to view holdings