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.

Business concern. Following a meeting that included Foreign Minister Alberto Van Klaveren and the president of the Confederation of Production and Commerce (CPC), Susana Jiménez, the union leader expressed her concern about Trump's announcement.

“From the CPC, we view this announcement with concern (...), given that it accounts for half of our exports and would therefore have significant repercussions,” said Jiménez.

Jiménez, however, maintained that the private sector hopes the measure will not materialize: “We know how important copper is for our economy, for our exports, but also for the whole world, because the energy transition process involves electrification, which requires a lot of copper.”

Codelco, the world's leading copper miner, said it is “attentive” to developments following the recent statements by the US president and will remain “in coordination with the Foreign Ministry.”

Special group on Trump's economic measures. The Boric administration and the private sector will analyze Trump's next steps and evaluate strategies to mitigate possible economic impacts.

After the meeting with the CPC, Van Klaveren reported that “a working group has been established through the Undersecretary of International Economic Relations (Subrei) in coordination with the Ministry of Finance” to “analyze Chile's main trade flows with the United States and assess the extent to which these flows could be affected.”

"We believe that the relationship with the United States is a very positive one from a commercial point of view. From the perspective of the Trump administration's priorities, this is a positive trend," he said, according to Diario Financiero.

Trump's proposal is part of his attempt to revitalize strategic industries in the United States. However, analysts warn that these measures could raise costs for local consumers and manufacturers, given the insufficient domestic production of copper and the time needed to reactivate processing capacities.

This was warned by former Foreign Minister Hernán Felipe Errázuriz in an article in El Mercurio over the weekend: "It must be taken into account that the United States has a trade balance in its favor, that domestic competition with its industrial products is very limited, and that our main exports are copper and other metals, of which North America has a deficit. Imposing tariffs on them is irrational, as it makes their manufactured goods more expensive for domestic consumption and the external market. Agricultural products and salmon could be adversely affected."

Jaime Troncoso R. Former - Ante