Chile and Mexico said on Wednesday they may seek new export markets to avoid planned U.S. tariffs on copper, one day after President Donald Trump said he would soon announce a 50 percent tariff on the metal.
Chilean Foreign Minister Alberto van Klaveren said copper exports would continue to find new markets, while President Gabriel Boric said he had not yet received official communication from the U.S. government. Boric also questioned whether the tariff would include copper cathodes and if the measure would actually be enforced.
Van Klaveren said the U.S. would still need copper imports because it lacks the capacity to replace current supplies. Chile is the largest copper supplier to the U.S., which accounts for about 11 percent of Chile’s total copper exports and under 7 percent of its refined copper shipments.
Chile’s Mining Minister Aurora Williams said it was too early to know if the country would ask for an exemption.
Mexico’s President Claudia Sheinbaum said in a press conference that her country could redirect copper exports to other countries if necessary. Mexican officials are scheduled to be in Washington on Friday for trade, security, and immigration talks.
Sheinbaum said copper is in demand worldwide and Mexico would work to find the best possible outcome with the U.S. while also exploring other markets.
Copper imports make up nearly half of the U.S. metal supply. Chile is the top refined copper supplier to the U.S., and Mexico ranks fifth. The new tariffs are expected to take effect by late July or August 1, prompting exporters to consider accelerating shipments before the deadline.
