By Daina Beth Solomon and Fabian Cambero
SANTIAGO, – Chile’s place on the low-end of U.S. tariffs introduced final week may very well be favorable for the world’s main copper-producing nation if U.S. President Donald Trump decides to slap tariffs on copper, Chile Mining Minister Aurora Williams mentioned on Wednesday.
Trump final week imposed a ten% tariff on Chile however exempted copper. It was the baseline quantity in a variety that stretched as excessive as 50% for different international locations, and has since jumped to 104% for China.
Trump’s administration remains to be conducting a probe begun in February into doable tariffs on copper, a metallic important for infrastructure, electrification and the vitality transition.
Such tariffs would immediately influence Chile, which produces 1 / 4 of worldwide copper provide.
Chile is in “wait-and-see” mode till the investigation concludes, Williams advised Reuters, however sees potential for a optimistic final result even when the U.S. imposes tariffs on copper.
“If we assume that Chile is inside the lowest tariff vary, the appliance of a possible 10% tariff is decrease than the tariffs we’ve seen for different copper-producing international locations and subsequently additionally generates a greater value place,” Williams mentioned in an interview on the sidelines of the CESCO and CRU copper conferences.
“This makes us a bit extra aggressive … and in addition generates nice alternatives,” she added.
Peru, the world’s third-largest copper producer, additionally obtained the baseline 10% tariff. The Democratic Republic of the Congo, the No. 2 copper producer, obtained 11%. The U.S. initially utilized a 34% tariff on China, the most important refining nation for copper, and that fee now has jumped to 104%.
Williams mentioned the uncertainty over tariffs may trigger international copper demand to gradual within the short-term, and will immediate copper producers to redirect international provide routes.
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