MercoPress. South Atlantic News Agency

Chile dodges US's 50% tariffs on copper

The announcement was welcomed in Santiago by Minister Aurora Williams and other officials

US President Donald Trump's 50% tariff on copper imports will not apply to Chile's primary export to the United States: refined copper cathodes. This decision, announced in a White House proclamation, has been met with relief and celebration by officials in Santiago.

The tariff, which takes effect on Friday, is specifically aimed at “semi-finished” copper products and high-intensity copper derivatives, such as pipes, wires, and electrical components. The proclamation explicitly states that ”copper inputs (such as copper minerals, concentrates, matas, cathodes, and anodes) and copper scrap are not subject to 232 (50% proclamation) or reciprocal tariffs.“

The rationale behind the tariff is to address the US's dependence on imported copper, which the administration considers a ”national security vulnerability.“ However, the exclusion of refined copper cathodes was a significant win for the South American country.

Following the announcement, COMEX copper prices in New York plummeted by almost 20%, as traders who had stockpiled the metal in anticipation of the tariff began to sell off their inventory.

In Chile, the news was welcomed by government and industry leaders. Foreign Minister Alberto van Klaveren noted that ”99.9% of our copper exports to the United States are made up of copper cathodes and, as a result, are not covered by this 50% tariff.“ This outcome, he added, was a result of collaborative efforts between the public and private sectors.

Mining Minister Aurora Williams highlighted Chile's role as the largest supplier of copper to the US, providing 70% of its imports, and affirmed the country's status as a reliable partner.

Máximo Pacheco, president of Chile's state-owned mining company, Codelco, also praised the decision, calling it ”good news for Chile, for Codelco, and for our customers in the US”

The proclamation also mentioned that the Department of Commerce will continue to analyze the copper market and is tasked with submitting a report by June 30, 2026. This report will help determine whether to impose a phased tariff on refined copper imports in the future, beginning in 2027.