Chile urges clarity on proposed U.S. copper tariffs amid industry uncertainty

Top copper exporter seeks official word from Washington on potential 50% levy.

Chile, the world’s largest copper producer, is demanding clear communication from the United States regarding proposed tariffs on copper imports. President Gabriel Boric said Wednesday that his administration is awaiting official notice from Washington following former President Donald Trump’s announcement of a potential 50% tariff on copper imports.

“We are waiting for the official communication from the United States government regarding what the policy will be — whether or not it includes copper cathodes, what the limits are, and whether this will actually be implemented or not,” President Boric told reporters.

The uncertainty has left Chile’s state-owned mining giant, Codelco, in a cautious position. Máximo Pacheco, Chairman of the Board, said the company is still evaluating the potential implications.

“What we need to do is understand what this is about. What products are affected? Because [Trump] referred to copper in general terms. But copper includes a variety of products,” Pacheco explained. “Then, we have to see whether this will apply to all countries or only some. We’ve always known that exceptions are made, and therefore, I think it’s premature to comment.”

U.S. is a minor but strategic market

While the U.S. is the top importer of Chilean copper among Western economies, it still represents less than 7% of Chile’s total refined copper exports. In 2024, Chile shipped approximately $5.72 billion worth of copper to the U.S., with China remaining its dominant buyer.

Other Latin American countries are also monitoring the situation closely. Mexico, currently the fifth-largest supplier of refined copper to the U.S., suggested it might reallocate shipments to other markets if the tariffs are confirmed.

“Copper is needed in many places around the world, so there are some options there,” said Mexican President Claudia Sheinbaum during a daily press conference in Mexico City.

Supply chain moves fast, but fot fast enough

Despite the lack of specifics, the global copper market is reacting swiftly. According to Benchmark Mineral Intelligence, producers are unlikely to ship copper to the U.S. fast enough to avoid the proposed tariffs, given that transit from Chile takes more than 20 days. European exporters face similar challenges.

In anticipation, U.S. importers have accelerated copper purchases in recent months. Between January and April 2025, they imported 461,000 tonnes, a significant increase of 232,000 and 148,000 tonnes compared to the same periods in 2024 and 2023, respectively.

As the copper market awaits clarity from Washington, both governments and producers are preparing for multiple scenarios that could impact trade flows, pricing, and supply chain logistics.