Freeport-McMoRan, a prominent mining company, saw a notable 4% increase in its stock on Wednesday, hitting an intraday high of $38.89. This uptick brought the stock into positive territory for the year. The surge came after the White House announced it was considering imposing tariffs on copper imports, a move that could significantly benefit the domestic copper industry.
The White House’s Strategy: ‘Copper to Come Home’
President Donald Trump’s administration revealed its plans to potentially impose tariffs on copper imports, aiming to reduce competition from China and bolster domestic production. Commerce Secretary Howard Lutnick emphasized the importance of strengthening American industries by making copper production a domestic priority, stating, “American industries depend on copper, and it should be made in America, no exemptions, no exceptions.”
This proposal mirrors previous tariff strategies on steel and aluminum, aimed at reducing foreign competition and encouraging US manufacturers to raise prices, thus improving profit margins. While Freeport-McMoRan operates mines globally, the company has significant copper production in the United States, with seven open-pit copper mines listed on its website.
The Potential Benefits for Freeport-McMoRan
Freeport-McMoRan stands to benefit from these potential copper tariffs, especially given the company’s focus on increasing production by up to 800 million pounds of copper annually. The tariffs could help the company achieve higher prices for its product, providing a significant boost to its bottom line. Additionally, as copper is a critical input in industries like electronics and construction, the tariff proposal could lead to a market-wide price increase for the metal, benefiting domestic producers like Freeport.
Global Copper Surge and Market Dynamics
The surge in Freeport-McMoRan’s stock also coincided with rising copper futures, which increased 1.76% on Wednesday morning following Trump’s tariff announcement. Copper prices saw record highs last year due to factors like a global copper shortage, Chinese stimulus measures, and growing demand for copper from AI data centers. Freeport-McMoRan’s stock saw highs of $54.23 last year, though shares faced headwinds earlier in 2025, largely due to broader macroeconomic concerns.
Goldman Sachs, in a note on Tuesday, projected that copper prices would break annual average price records in 2025 and 2026. The investment firm forecasted an average copper price of $9,740 per ton in 2025 and $11,175 per ton in 2026, both above current forward prices. Goldman Sachs also cited an expected deficit in copper supply, which could further push prices up and support the market growth for new mines through the end of the decade.
What This Means for Freeport-McMoRan’s Future
While the proposed tariffs may provide a temporary boost to Freeport-McMoRan’s stock, they come with potential risks. Copper is used in a wide range of industries, and tariff increases could lead to higher costs across various sectors, potentially straining global supply chains. However, if the tariffs are implemented, they could give Freeport-McMoRan and other domestic copper producers an edge in the global market, bolstering profits.
Freeport-McMoRan’s strong production capabilities and its significant role in the copper market position the company well for potential gains from these tariff policies. The company’s stock will likely continue to be influenced by copper price trends and any further developments regarding Trump’s trade policies.
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