🇨🇱 Chile has welcomed the United States’ decision not to impose a 50% tariff on refined copper cathode exports, a critical product for Chile’s copper industry and main export to the US. This measure, officially announced by the White House, excludes cathodes, minerals, concentrates, anodes, and copper scrap from the tariffs, which only affect semi-finished and derivative copper products such as pipes, cables, and electrical components.
In 2024, Chile exported approximately 606,400 metric tons of copper cathodes to the US, representing about 75% of the total US imports and 99.9% of Chilean copper exports to the country. The exclusion of these tariffs ensures the continuity of the most significant trade flow for Chile’s copper sector and mitigates negative impacts on key companies like Codelco, the state mining company and the world’s largest copper producer.
Chilean authorities, including Chancellor Alberto van Klaveren, Mining Minister Aurora Williams, and Finance Minister Mario Marcel, praised this decision as recognition of Chile’s role as a reliable partner and responsible producer. The coordinated efforts between the public and private sectors, including a detailed report by the Chilean Copper Commission and ongoing dialogue with US authorities and customers, were highlighted. Minister Williams emphasized the importance of promoting critical minerals and opening new markets, while Codelco’s President Máximo Pacheco called the decision excellent news for Chile and its US clients.
The US decree also includes future reviews: by June 30, 2026, the US Secretary of Commerce must assess the copper market and may gradually impose tariffs of 15% in 2027 and up to 30% in 2028 on refined copper, depending on domestic industrial development, particularly in refining and manufacturing. This reflects the US intent to boost local production of copper pipes and cables without significant short-term increases in smelting and refining capacity.
Additionally, US policies require that at least 25% of domestically produced copper (including minerals, concentrates, and anodes) remain in the US market to supply manufacturing industries, increasing to 40% by 2029. This aims to support the domestic refining industry and may incentivize postponed mining projects in the US.
Economically, the news caused an immediate impact on copper prices on the New York COMEX futures market, with a nearly 20% drop after the exclusion of cathode tariffs. According to Chile’s Central Bank, exports to the US reached approximately $15 billion in 2024, largely driven by refined copper.
In summary, excluding copper cathodes and other key inputs from US tariffs is a significant commercial victory for Chile, ensuring sector stability and maintaining strong bilateral copper trade. It also opens the door for future negotiations and evaluations to strengthen both Chilean and US industries.
Business implications include sustained export revenues for Chile, potential for stable supply chains for US manufacturers, and incentives for US domestic mining and refining investments. The decision underscores the strategic importance of copper in global trade and highlights opportunities for collaboration and market development in the mining sector.
Source(s): https://btgpactual.cl/inversiones-digitales/blog/mercados/perspectivas/cobre-refinado-queda-fuera-de-los-aranceles-de-estados-unidos/, https://es.mercopress.com/2025/07/31/chile-evita-aranceles-del-50-de-ee.-uu.-al-cobre, https://energiminas.com/2025/08/05/chile-califica-como-buena-noticia-la-no-imposicion-de-aranceles-a-exportacion-de-catodos-de-cobre-a-estados-unidos/
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🇨🇱 Chile has welcomed the United States’ decision not to impose a 50% tariff on refined copper cathode exports, a critical product for Chile’s copper industry and main export to the US. This measure, officially announced by the White House, excludes cathodes, minerals, concentrates, anodes, and copper scrap from the tariffs, which only affect semi-finished and derivative copper products such as pipes, cables, and electrical components.
In 2024, Chile exported approximately 606,400 metric tons of copper cathodes to the US, representing about 75% of the total US imports and 99.9% of Chilean copper exports to the country. The exclusion of these tariffs ensures the continuity of the most significant trade flow for Chile’s copper sector and mitigates negative impacts on key companies like Codelco, the state mining company and the world’s largest copper producer.
Chilean authorities, including Chancellor Alberto van Klaveren, Mining Minister Aurora Williams, and Finance Minister Mario Marcel, praised this decision as recognition of Chile’s role as a reliable partner and responsible producer. The coordinated efforts between the public and private sectors, including a detailed report by the Chilean Copper Commission and ongoing dialogue with US authorities and customers, were highlighted. Minister Williams emphasized the importance of promoting critical minerals and opening new markets, while Codelco’s President Máximo Pacheco called the decision excellent news for Chile and its US clients.
The US decree also includes future reviews: by June 30, 2026, the US Secretary of Commerce must assess the copper market and may gradually impose tariffs of 15% in 2027 and up to 30% in 2028 on refined copper, depending on domestic industrial development, particularly in refining and manufacturing. This reflects the US intent to boost local production of copper pipes and cables without significant short-term increases in smelting and refining capacity.
Additionally, US policies require that at least 25% of domestically produced copper (including minerals, concentrates, and anodes) remain in the US market to supply manufacturing industries, increasing to 40% by 2029. This aims to support the domestic refining industry and may incentivize postponed mining projects in the US.
Economically, the news caused an immediate impact on copper prices on the New York COMEX futures market, with a nearly 20% drop after the exclusion of cathode tariffs. According to Chile’s Central Bank, exports to the US reached approximately $15 billion in 2024, largely driven by refined copper.
In summary, excluding copper cathodes and other key inputs from US tariffs is a significant commercial victory for Chile, ensuring sector stability and maintaining strong bilateral copper trade. It also opens the door for future negotiations and evaluations to strengthen both Chilean and US industries.
Business implications include sustained export revenues for Chile, potential for stable supply chains for US manufacturers, and incentives for US domestic mining and refining investments. The decision underscores the strategic importance of copper in global trade and highlights opportunities for collaboration and market development in the mining sector.
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