Chile views any Trump tariffs against copper as positive

Chile's position at the lower end of U.S. copper tariffs could be advantageous for the world's largest copper-producing nation if U.S. president Donald Trump decides slap tariffs, said Chile Mining Minister Aurora Williams on Wednesday.

Trump imposed a 10% tax on Chile last week, but left copper out. The baseline tariff was a percentage that could reach as high as 50 percent for other countries. Since then, the amount has risen to 104% in China.

The Trump administration continues to investigate possible tariffs against copper, an essential metal for infrastructure, electricification, and energy transition.

Chile, which accounts for a quarter the world's copper supply, would be directly affected by such tariffs.

Williams said that Chile is "waiting and seeing" until the investigation is concluded, but he sees the potential for a good outcome, even if tariffs are imposed by the U.S. on copper.

Williams stated in an interview at the CESCO and CRU Copper Conferences that "if we assume Chile is within the lower tariff range, then the application of a 10% potential tariff is lower than tariffs we've seen for other countries producing copper and generates also a better pricing position."

She added, "This makes us more competitive... and creates great opportunities."

The third largest copper producer in the world, Peru, received a 10% base tariff. The Democratic Republic of the Congo (DRC), the world's No. 2 copper producer, received 11%. The Democratic Republic of the Congo, the No. The U.S. originally applied a tariff of 34% on China, which is the largest refining country in copper. That rate has now jumped to 104%.

Williams stated that the uncertainty surrounding tariffs may cause the global demand for copper to slow down in the short term, which could lead copper producers to reroute global supply routes. (Reporting and editing by David Gregorio, Daina Beth Solon, Fabian Cambero)

(source: Reuters)