Reuters: Chile, the world's largest copper producer, is watching the impact of Trump's copper tariff policy
Reuters, July 9 report, after US President Trump announced a 50% tariff on copper imports, the world's largest copper producer Chile is in a wait-and-see mode. The country was caught off guard, and top mining companies are seeking exemptions. Maximo Pacheco, chairman of Chile's state mining company Codelco, said that it is necessary to clarify the specific products covered by the tariff and whether it applies to all countries. He said, "Copper includes various products, exceptions may exist, and it is too early to comment now." Data shows that Chile is the largest single supplier of copper to the United States, but its exports of refined copper to the U.S. account for less than 7%, with the main export market being China. After Trump's statement, copper futures on the New York Mercantile Exchange surged over 12%, hitting a record high. Jorge Riesco, president of the Chilean Mining Association SONAMI, warned that the tariff would cause market uncertainty and price fluctuations, harming suppliers. He said, "The prices driven up by American companies stockpiling are temporary, and the U.S. lacks self-sufficiency and heavily relies on China's refined capacity." The Chilean Foreign Ministry said it has not received an official notice from the U.S. and will continue dialogue. Codelco, the world's largest copper producer, has seen its production fall to a 25-year low in recent years. Pacheco pointed out that global copper demand is expected to increase by 3% this year, but supply is difficult to increase. "Production is more difficult than last year," and U.S. demand for copper will continue to grow due to electric vehicles and grid expansion.
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