Donald Trump's planned copper tariffs will be significantly less extensive than the market had expected. This caused the price of copper in the US to plummet by nearly 20 percent on Wednesday, dragging several mining stocks down with it.

According to Handelsbanken's commodities analyst Christian Kopfer, the reaction is exaggerated, especially for Swedish companies.

The price drop of nearly 20 percent dragged several mining stocks down, including Boliden and Lundin Mining, even though the impact on Swedish companies is expected to be limited.

"They haven't benefited from these tariffs in the US from the outset," Handelsbanken's commodities analyst Christian Kopfer told Di, calling the price reaction an exaggeration.

Boliden and Lundin Mining, which sell virtually all their copper on the LME exchange, fell by 4 and 3 percent respectively in early trading on Thursday. Rio Tinto also fell by around 3.5 percent in Sydney.

According to Di, the price of copper was close to $6 per pound earlier in July, but fell to $4.60 after the announcement that the tariffs would only apply to unprocessed products such as copper wire and copper pipes.

Goldman Sachs believes that the milder outcome does not change the long-term outlook for the copper market.