By Daina Beth Solomon and Fabian Cambero
SANTIAGO (Reuters) – Chile’s place at the low-end of U.S. tariffs announced last week could be favorable for the world’s leading copper-producing country if U.S. President Donald Trump decides to slap tariffs on copper, Chile Mining Minister Aurora Williams said on Wednesday.
Trump last week imposed a 10% tariff on Chile but exempted copper. It was the baseline amount in a range that stretched as high as 50% for other countries, and has since jumped to 104% for China.
Trump’s administration is still conducting a probe begun in February into possible tariffs on copper, a metal essential for infrastructure, electrification and the energy transition.
Such tariffs would directly impact Chile, which produces a quarter of global copper supply.
Chile is in “wait-and-see” mode until the investigation concludes, Williams told Reuters, but sees potential for a positive outcome even if the U.S. imposes tariffs on copper.
“If we assume that Chile is within the lowest tariff range, the application of a potential 10% tariff is lower than the tariffs we have seen for other copper-producing countries and therefore also generates a better price position,” Williams said in an interview on the sidelines of the CESCO and CRU copper conferences.
“This makes us a bit more competitive … and also generates great opportunities,” she added.
Peru, the world’s third-largest copper producer, also received the baseline 10% tariff. The Democratic Republic of the Congo, the No. 2 copper producer, received 11%. The U.S. initially applied a 34% tariff on China, the biggest refining country for copper, and that rate now has jumped to 104%.
Williams said the uncertainty over tariffs could cause global copper demand to slow in the short-term, and could prompt copper producers to redirect global supply routes.
(Reporting by Daina Beth Solomon and Fabian Cambero; Editing by David Gregorio)
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