On Monday night, Trump announced his intention to impose tariffs on copper, steel, and aluminum, which could affect Chile. The CPC (Confederation of Production and Commerce) expressed its concern, and the government is analyzing strategies to mitigate the impact. Experts warn that the measure could make manufacturing in the US more expensive and affect trade relations.
What happened? On Monday night, Trump announced his intention to impose tariffs on copper, steel, and aluminum as part of his “America First” policy, aimed at strengthening US industry.
He made the comment to reporters who accompanied him from Florida, where he held an event, to Washington, DC.
Trump expressed his desire to implement widespread tariffs that are “much higher” than 2.5% in order to protect the US economy and encourage local manufacturing.
“I have in mind what it will be, but I'm not going to set it yet, but it will be enough to protect our country,” Trump told reporters, according to Bloomberg.
He mentioned specific sectors such as semiconductors, pharmaceuticals, steel, copper, and aluminum as possible targets for these tariffs.
The measure, if implemented, could have significant repercussions for Chile, the world's largest copper exporter.
Why does it matter? The United States accounts for 11.3% of Chilean copper exports, which reached US$37.278 billion in the third quarter of 2024, according to the Central Bank. The top destination is China, which accounts for 51.3% of the total.
For Chile, copper accounts for about 50% of exports, making it a fundamental pillar of the economy. When the price of copper rises, the country receives more revenue from its exports. This increases the supply of dollars in the local market, which can lead to an appreciation of the Chilean peso against the dollar. The imposition of tariffs by the US, if it materializes, could reduce the competitiveness of this strategic resource, affecting both exports and tax revenue derived from mining.