Southern Copper Corp (SCCO) saw its stock price plummet by 5.07% in Wednesday's intraday trading session, as concerns over the U.S.-China trade war and potential tariffs cast a shadow over the copper sector. The sharp decline comes amid broader worries about global copper demand and prices.

Raul Jacob, CFO of Southern Copper, warned in a call with analysts that "an intense commercial war between the U.S. and China will affect economic growth worldwide," potentially impacting the copper industry. While maintaining a positive long-term outlook for copper, Jacob acknowledged the short-term challenges facing the sector.

Adding to the pressure on copper stocks, benchmark three-month copper on the London Metal Exchange fell 0.6% to $9,736 per metric ton, touching its weakest level since July 18. The decline in copper prices was attributed to climbing inventories and investor concerns about looming U.S. tariffs affecting demand. The Trump administration has announced plans to implement a 50% tariff on copper imports starting Friday, creating uncertainty in the market. Jacob noted that the large price difference between the U.S. Comex exchange and London Metal Exchange indicated a "strong possibility" of U.S. tariffs on copper imports.

As the third-largest copper producer in Peru, Southern Copper finds itself particularly vulnerable to these market dynamics. While the company maintains a positive long-term outlook for copper, the immediate future appears challenging as the industry grapples with the potential fallout from trade tensions and tariff implementations.