In a significant development within the global copper market, Chile, Canada, and Peru have formally opposed the United States’ ongoing investigation into potential tariffs on imported copper. These three nations collectively supply approximately 94% of the U.S.’s refined copper and copper alloy imports.
The U.S. Department of Commerce, under the directive of President Donald Trump, is conducting a Section 232 investigation to assess whether copper imports pose a threat to national security. This move is part of a broader strategy to reduce reliance on foreign sources for critical minerals lo and bolster domestic production capabilities.
In response, the governments of Chile, Canada, and Peru have submitted letters asserting that their copper exports do not compromise U.S. security interests. They argue that imposing tariffs could disrupt established trade relationships and inadvertently benefit other global competitors, particularly China.
Industry stakeholders have also voiced concerns. Freeport-McMoRan, a major copper producer with operations in the U.S., Chile, Peru, and Indonesia, cautioned that tariffs might negatively impact the global economy. The American Chamber of Commerce in Chile highlighted the economic advantages of Chilean copper imports to the U.S., warning that tariffs could shift trade dynamics unfavorably.
Alternative measures are being proposed by U.S. industry players. Suggestions include implementing export controls on copper concentrate and scrap metal to encourage domestic production. Companies like Rio Tinto and Southwire advocate for regulatory reforms and export restrictions as primary tools to strengthen the industry. Additionally, the Copper Development Association has requested exemptions from import tariffs for raw materials.
The outcome of the Section 232 investigation, expected by November, will be pivotal in determining the future landscape of copper trade and its implications for international relations and the global economy.