Chile and Mexico consider alternative copper markets as US tariffs loom

The US has announced a 50% tariff on copper imports, pushing Chile and Mexico, its top suppliers of the metal, to seek new buyers. Both countries have already reduced their reliance on the American market, redirecting over half of their copper exports to China. However, the US remains crucial for both.

Chile is the largest copper supplier to the United States, which accounts for about 11% of its total copper exports and less than 7% of its refined copper shipments. Chilean Foreign Minister Alberto van Klaveren stated that the country is capable of finding new buyers. However, he emphasized that the US consumes nearly half of all imported copper and won't be able to ramp up domestic production quickly.

Mexico, which exports roughly 5% of its copper to the US, has stated it is prepared to redirect its shipments if necessary. Meanwhile, Mexican officials will continue discussions with their American counterparts during upcoming meetings in Washington.

Before the tariffs take effect, market players will likely rush shipments to the US to avoid additional costs. This could trigger a short-term surge in copper deliveries ahead of the restrictions being implemented.