Key Takeaways
- Mining stocks tumbled Friday amid worries the Trump administration’s tariffs could impact demand for raw materials.
- Jefferies analysts warned the tariffs could harm demand for metals and U.S. buyers could “step out of the market.”
- However, lower share prices could create an attractive entry point for investors willing to ride out volatility, they said.
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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