July 9 (UPI) -- U.S. President Donald Trump's announcement of a proposed 50% tariff on copper imports has raised concerns in Chile and Peru, which together account for nearly 40% of global copper production.
Copper prices in New York rose an average of 12% after the news, potentially boosting short-term revenues. But analysts warn that if the tariff goes into effect, U.S. demand could drop, pushing prices down and cutting into producer earnings.
The proposal was met with caution in both South American countries, as the economic impact could affect trade balances and fiscal stability.
Chile could be hit hardest -- its copper makes up 35.7% of total U.S. copper imports. In Peru, the immediate effect is expected to be more limited, with the U.S. accounting for just 2.4% of its copper exports.
Although the United States is not the primary destination for Chilean copper, Chile exported about $6.3 billion worth to the The United States in 2024, accounting for 12.8% of its total copper exports.
