Peru is sending a delegation to the US to address impending copper tariffs by the Trump administration, aiming to safeguard its copper trade. The country emphasizes its strategic partnership with the US and the importance of avoiding harmful trade measures. Concerns arise from the impact on other Peruvian exports amidst the evolving trade landscape.
Peru, the world’s third-largest copper supplier, is dispatching a delegation to the United States to engage with officials regarding proposed copper tariffs by the Trump administration. These tariffs threaten to disrupt existing metal trade relations. Energy and Mines Minister Jorge Montero noted the rapid changes in trade rules and expressed concerns about the potential impact of US policies on Peru’s economy, specifically regarding restrictive measures.
Nations such as Peru and Chile, which rely heavily on copper exports, are preparing for the consequences of tariffs. The US seeks to bolster domestic manufacturing and resolve trade imbalances, leveraging tariffs as a negotiation tool. Notably, American industries depend on imported copper for approximately half of their needs, which may provide leverage in negotiations.
President Trump highlighted the potential for copper tariffs at the end of January, subsequently initiating an investigation into the issue on national security grounds. This inquiry typically prolongs the tariff implementation process, offering temporary relief to the affected sectors. However, recent discussions have reignited the prospect of tariffs, causing renewed concern.
Most of Peru’s copper exports are directed toward China, with only a portion sent to the US. Freeport-McMoRan Inc., a US producer, operates Cerro Verde, one of Peru’s major copper mines. Unlike Peru, Chile may face greater risk, as state-owned Codelco is the leading exporter of copper to the US. Montero has not addressed how US tariffs may affect other Peruvian exports like blueberries and table grapes.
Montero asserted that “Peru is a good strategic ally for the US on business issues,” emphasizing the country’s openness to investments from multiple global players without aligning exclusively with one geopolitical perspective.
Peru is taking proactive measures to engage with US officials to mitigate the impact of proposed copper tariffs. The nation emphasizes its strategic economic relationship with the US while preparing for potential consequences on various exports. The situation remains fluid as Peru seeks to navigate trade discussions amidst changing US policies.
Original Source: business.financialpost.com
