On July 8 (Tuesday), after US President Donald Trump unexpectedly announced a 50% import tariff on imported copper, Chile, the world's largest copper producer, was left in a state of wait-and-see, caught off guard, with the country's top miner still holding out hope for an exemption.
Xinhua News Agency, New York, July 8: US President Donald Trump said on the 8th that a new 50% tariff would be imposed on all copper imported into the US, but did not disclose the specific time when the new tariff would take effect. US President Donald Trump said on the 8th that a new 50% tariff would be imposed on all copper imported into the US, but did not disclose the specific time when the new tariff would take effect.
Shortly after Trump's speech, Maximo Pacheco, chairman of Codelco, Chile's state-owned copper mining company, said the company wanted to know which copper products were included and whether the tariff would hit all countries.
"What we need to do is understand what's going on, which products are affected? Because he used general terms when referring to copper, but copper encompasses many products," Pacheco said in his first comments since the tariff announcement.
"Then, we have to see if it applies to all countries or just some. We've always known that exceptions exist, so I think it's too early to comment now."
After Trump announced the tariff plan, US COMEX copper futures jumped over 12%, hitting a record high.
Chile is the largest single supplier of copper to the US, with the US market accounting for less than 7% of its refined copper exports.
Jorge Riesco, president of SONAMI, said the tariff could lead to market uncertainty and price volatility, which could hit Chile and other suppliers.
He said the potential rise in copper prices due to US companies stockpiling copper ahead of possible tariffs could be temporary, and warned that the US might struggle to expand its own supply.
