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Mining Stocks Show Cracks Amid Worries Tariffs Could Impact Metals Demand
Key Takeaways
Mining stocks tumbled Friday amid worries the Trump administration’s sweeping tariffs could impact demand for raw materials.
Shares of Glencore, the Swiss mining giant, dropped 9% in London, while Anglo American stock fell close to 7%. In the U.S., Freeport-McMoRan ( FCX ) shares tumbled close to 12%, BHP Group ( BHP ) shares fell more than 8%, and Rio Tinto ( RIO ) shares were down about 4%. Other mining stocks also lost ground.
“We are likely entering a period of weakening demand as a result of tariffs,” Jefferies analysts said Thursday. The analysts said they expect U.S. buyers to “step out of the market” in response to higher prices for metals hit by tariffs.
However, mining stock declines have also created what could be “attractive levels for those who can ride out the near-term volatility," they said.
President Trump announced reciprocal tariffs against a wide range of foreign countries Wednesday, rattling markets with a broad-based selloff across industries. In response, China
announced a 34% tariff
on imports from the U.S., set to go into effect on April 10. (Read
Investopedia's
live coverage of
today's market action here
.)
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