Goldman Sachs salespeople recommended hedge fund clients bet on US copper price surge before Trump’s tariff decision caused market to crash. Trump announced limited tariff, exempting main traded form of copper, leading to a 22% price drop. Goldman sent apology email titled “No copper tariff” after misstep caught market by surprise.

Citigroup Inc. was also blindsided, with salespeople recommending buying arbitrage in copper. Goldman had been urging clients to bet on rising US copper prices after Trump’s announcement of 50% tariffs. Despite concerns about exemptions, Goldman argued for spread between US and global prices to rise. Value of September calls recommended by Goldman has plunged by more than 90% since tariff announcement.

Goldman’s sales calls and emails were separate from research notes predicting 50% copper tariffs. Analysts suggested “minerals diplomacy” could lead to exemptions. Both Goldman and Citi declined to comment on the situation. The market collapse was double the previous record drop for the US copper contract.

Read more at Yahoo Finance: Goldman Told Clients to Go Long Copper a Day Before Price Plunge