Peru, the world’s third-largest copper supplier, is sending a delegation to the U.S. to discuss potential copper tariffs announced by the Trump administration. Energy Minister Jorge Montero highlights the necessity of preventing adverse measures while confirming Peru’s role as a strategic ally open to diverse international business. The implications of the tariffs have considerable repercussions for exports from Peru and Chile, reliant on copper trade.
Peru, recognized as the world’s third-largest copper supplier, is preparing to dispatch a delegation to engage with U.S. officials following an announcement by the Trump administration regarding potential copper tariffs. These tariffs pose a significant threat to existing metal trade operations. Jorge Montero, Peru’s Energy and Mines Minister, emphasized the urgency of this situation, indicating the need to mitigate the impact of restrictive measures tied to U.S. interests.
The prospect of tariffs has global governments and industries anticipating considerable consequences, particularly as President Donald Trump prioritizes the rejuvenation of U.S. manufacturing. Peru and Chile, both heavily reliant on exports, hope to leverage their trade agreements with the U.S. and the fact that American purchasers depend on imports for a substantial portion of their copper needs, amounting to approximately half.
Initially referenced by President Trump as a possible strategy in late January, the discussion of copper tariffs was revived after he initiated a review into national security-based tariffs. This investigation is expected to prolong the final decision, offering the copper industry some temporary reprieve; however, renewed discussions have prompted concerns once more.
Though Peru exports a portion of its copper to the U.S., the majority is processed semi-finished and sent to smelters in China. Additionally, Freeport-McMoRan Inc., a U.S. company, operates one of Peru’s largest mines, Cerro Verde. While Chile is increasingly vulnerable due to Codelco, its state-owned entity that predominantly supplies copper to the U.S., Montero did not elaborate on other Peruvian exports potentially affected by these tariffs, such as blueberries or table grapes.
Montero reiterated Peru’s strategic partnership with the U.S. but reinforced the nation’s commitment to a diverse range of international business ventures. He stated, “Peru is a good strategic ally for the U.S. on business issues, but not just for the U.S. We are a non-aligned country, one that’s open to investments and business with everyone.”
In conclusion, Peru’s proactive approach to send a delegation to the U.S. aims to prevent the imposition of copper tariffs that could disrupt trade relations. The global impact of these tariffs, particularly under President Trump’s administration, raises serious concerns for export-dependent countries like Peru and Chile. Maintaining strategic alliances while promoting diverse international partnerships exemplifies Peru’s globalization strategy in response to U.S. economic policies.
Original Source: business.financialpost.com
