Shares of Freeport-McMoran Inc. (NYSE:FCX) dropped as much as 5% on Monday before trimming losses to around 3%, as Chilean officials expressed confidence that copper exports may be exempted from the United States’ proposed tariff plans.
Speaking in a Radio Duna interview, Chile’s Finance Minister Mario Marcel said he’s hopeful that copper will be carved out of the new trade measures currently under discussion in Washington. Marcel pointed to past trade negotiations in which raw materials were exempted, referencing similar cases involving steel with the United Kingdom and copper with Indonesia.
“We expect these conversations starting today in Washington to also cover the copper issue, because it wouldn’t be very useful to have a trade agreement that excludes more than half of our exports to the U.S., such as copper and wood,” Marcel stated.
Concerns over a potential 50% tariff on copper imports to the U.S. have unsettled the market, with significant implications for Freeport-McMoran, one of the world’s top producers of the metal. The company has broad international mining operations, and any restriction on Chilean copper access to the U.S. market could affect its global supply chain and revenue.
Chile, the largest copper exporter globally, is focusing on diplomatic engagement rather than retaliatory trade actions. Marcel made it clear that the government has no plans to implement reciprocal tariffs:
“A tariff is a tax on imports that local consumers have to pay… We are not going to punish our taxpayers by applying a tariff on imports from the U.S.”
The negotiations are seen as pivotal not only for Freeport-McMoran but also for the broader copper industry. As discussions progress, the outcome could have far-reaching effects on international copper trade dynamics and pricing.
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