Canada's CAD 27.6 Billion Countermeasures: Tariffs Imposed on Copper and Aluminum Processed Products
Canada has released a CAD 27.6 billion (about USD 20 billion) countermeasure list covering more than 700 U.S.-made goods, which will officially take effect on September 8, accompanied by a CAD 7.5 billion industrial assistance program.
Tariffs will only apply to products of U.S. origin:
- Aluminum: Tariffs on most aluminum products will be raised to 50%, and 25% for some derivatives
- Copper: A 50% tariff will be imposed on U.S.-made copper wires, and 25%‑50% for some semi-finished copper products
Key point: This round of measures targets copper and aluminum processed products, and does not involve LME primary copper and aluminum ingots. The impact will focus on North American regional trade flows, potentially altering the direction of regional cargo flows, mainly disrupting North American spot premiums and discounts. Global盘面 trading will be mainly driven by sentiment, and attention should be paid to spot changes after the policy is implemented.
U.S. July Trade Deficit Exceeds Expectations, Rattling External Markets with the U.S. Dollar
The U.S. July goods trade deficit reached USD 118.8 billion, expanding 17.2% month-on-month, hitting a new high since March 2025.
- Imports rose 3.7% month-on-month, with a significant surge in capital goods imports
- Exports performed steadily; the trade deficit will drag down Q3 GDP
The U.S. dollar has an inverse correlation with non-ferrous metal prices. The U.S. dollar index fluctuated in both directions after the data release: The deficit data theoretically suppresses the dollar, but market bets on Federal Reserve interest rates have lifted dollar volatility. The strength of the U.S. dollar directly affects the valuation of non-ferrous metal external markets. Currently, geopolitical and macro factors take priority over fundamentals.
Brief Summary
- Canada's tariff impact will disrupt U.S.-Canada processed product trade, with no direct restrictions on primary metals, leading to short-term sentiment-driven market trends;
- U.S. trade data will exacerbate dollar volatility, raising the risk of fluctuations in copper and aluminum external markets.
