According to the Executive Order signed this Wednesday by U.S. President Donald Trump, a group of goods will not be subject to this new “reciprocal tariff,” among them the main product Chile exports to the United States.
By Víctor Guillou y Rodrigo Cárdenas
The announcement of an additional and unilateral tariff increase by the United States on global imports will deliver a blow to the export sector, including Chile. However, the main product Chile sends to the northern nation would remain unaffected: copper.
According to the Executive Order signed this Wednesday by U.S. President Donald Trump, a group of goods will not be subject to this new “reciprocal tariff.” Among them are copper, pharmaceuticals, semiconductors, and wood products, as well as energy products and certain other minerals. Nonetheless, it remains unclear whether copper could be targeted by a different tariff in the near future, as further product-specific duties are expected to be announced.
Copper is Chile’s leading export to the U.S., totaling US$5.884 billion in 2024, according to data from the Undersecretariat of International Economic Relations (Subrei).
In this context, Juan Carlos Guajardo, Executive Director of consulting firm Plusmining, stated, “This whole situation represents a very profound change in the rules of global trade, and it will have severe impacts on the global economy something we’ll need to evaluate over time. That said, from Chile’s perspective it seems we are among the least affected, given that we face the minimum tariff of 10%, and copper is not currently included. Compared to other copper producing countries, even if excluded, we’re still in a better position.”
He added, however, that “another important factor is how the rest of the world will react—particularly China, which plays a key role in all this. Perhaps the most important impact Chile should monitor is what happens with the Chinese economy, on which we depend significantly. If there is a downturn in China and the global economy, that should be our greatest concern right now.”
Juan Ignacio Guzmán, CEO of GEM Mining Consulting, also commented, “It’s good news that copper has been excluded from the tariffs announced by Trump, but the real question is whether it could be included later on. Copper is currently under investigation, and Trump’s order doesn’t necessarily mean that investigation will stop. From that standpoint, we must remain cautious.”
Guzmán added, “The price trend of copper in the coming days will give us clues about what the market believes. If the price drops closer to US$4 per pound on the London Metal Exchange, the market may interpret this as confirmation that copper is off the negotiation table. But the truth is, speculation is already happening and it’s been significant—because this marks a potential turning point for the industry. If copper prices remain relatively stable, then the market is likely still speculating that additional tariffs could be imposed eventually.”
Meanwhile, the president of the National Mining Society (Sonami), Jorge Riesco, commented, “President Donald Trump’s decision to exclude copper from the reciprocal tariff is mainly due to the fact that this metal is strategic for the United States, both for its use in infrastructure and in technology, energy, and defense. In this way, Trump is ensuring access to this critical resource, and in that regard, Chile plays an important role as the main supplier of this mineral to the U.S.”
Source: La Tercera