Trump’s Proposed Copper Tariffs Threaten U.S. Supply Chains and Domestic Competitiveness

Washington's impending copper tariffs have cast uncertainty across global supply chains, with Chile—the source of 70% of U.S. copper imports—seeking an exemption. Domestic manufacturers, reliant on foreign supplies for nearly half their copper, face limited alternatives. Macquarie analyst Alice Fox warns duties on intermediate goods like wires and rods WOULD inflate production costs, eroding U.S. fabricators' global competitiveness.

Antofagasta Plc CEO Ivan Arriagada notes potential margin benefits for miners but highlights squeezed profits for U.S. producers. Chilean miners derive just 10% of copper revenue from the U.S., dwarfed by Chinese demand. While tariffs may incentivize local smelting, they’re unlikely to spur new mining projects given decades-long development timelines.