Chile, the world’s largest copper producer, is seeking answers after U.S. President Donald Trump announced a surprise 50% tariff on imported copper. The move sent U.S. Comex copper futures soaring over 12% to a record high, sparking market volatility and concerns among top exporters.
Codelco Chairman Maximo Pacheco said the state-run miner is trying to understand the scope of the tariffs—specifically which copper products are included and whether all countries will be affected. "It’s premature to comment. We need more clarity," he told Reuters.
Chile supplies the most copper to the U.S., though the American market accounts for less than 7% of its refined copper exports. Most of Chile's copper is shipped to China, the global leader in copper refining. Still, the sudden policy shift could disrupt trade flows.
SONAMI President Jorge Riesco warned the tariff could trigger temporary price spikes due to pre-tariff stockpiling but doubted long-term sustainability, citing the U.S.’s limited refining capacity and dependence on Chinese facilities.
Chile’s foreign ministry stated it had not received formal notification about the tariff but remains in talks with U.S. authorities. Chile, along with Canada and Peru, had earlier opposed U.S. tariff probes into copper imports.
Pacheco emphasized that the U.S. will continue to need significant copper volumes for electric vehicles, infrastructure, and defense. However, he noted Codelco’s production is at a 25-year low and global supply growth remains stagnant. He forecast a 3% rise in global copper demand this year, worsening the supply-demand gap.
"The global copper supply is increasingly difficult to expand," Pacheco said, signaling further market tightness ahead.