Trump’s Proposed Copper Tariffs Spark Industry Uncertainty

President Trump's announcement of a 50% tariff on imported copper, effective August 1, has sent shockwaves through the global copper industry. The lack of clarity on whether the duty applies to raw ore, refined metal, or unfinished products has left miners and manufacturers scrambling to assess the impact.

Codelco, the world's largest copper miner, expressed concerns about the ambiguity. "Our customers have some anxiety, and they need to understand where all this will end," said Chairman Máximo Pacheco. The Chilean state-owned firm, a major supplier to U.S. industries, emphasized the value of open trade and offered to boost refined copper exports to support American factories.

The proposed tariffs threaten to disrupt multiple U.S. sectors, from electric vehicle production to defense contracting. Chile, which supplies over 60% of America's refined copper imports under a free-trade pact, could see its trade relationship fundamentally altered. "If the U.S. really wants to develop more manufacturing of copper products, it is clear to us that they will need more copper cathodes," Pacheco noted, highlighting the potential supply chain challenges.