US copper production at risk of decline due to Trump's duties — Freeport CEO

The potential imposition of US tariffs on copper imports is profitable for Freeport-McMoRan. The North America's largest producer is capitalizing on pricing for the metal, as reported by Miningweekly. However, CEO Kathleen Quirk cautions about the effects of such tariffs on the industry the US administration seeks to bolster.

Quirk emphasized that slowing industrial growth can put pressure on copper prices. Among key negative factors for local mining operations, she mentioned the declining GDP growth and mounting inflationary pressures.

The situation in the copper market has escalated after US President Donald Trump instructed the Secretary of Commerce to launch an investigation into copper imports at the end of February. The actions allow him to impose restrictions on the purchase of the resource from abroad, based on national security considerations.

This tariff speculation has already lifted copper prices in the US above the levels of other markets. On the COMEX exchange in New York, the metal is now trading about 9.3% more expensive than on the London exchange. These shifts are encouraging traders and producers to increase shipments to the US before the duties come into effect.