Peru, as the world’s third-largest copper supplier, is sending a delegation to the U.S. due to threats of copper tariffs announced by the Trump administration. Minister Jorge Montero expressed the need to mitigate potential economic harm. Export-dependent nations like Peru and Chile rely on trade agreements, with the U.S. dependent on imports for copper. Montero emphasized Peru’s open investment policies and strategic role without commitment to a specific geopolitical stance.
Peru, the world’s third-largest copper supplier, is preparing to send a delegation to the United States in response to announced tariffs by the Trump administration that could disrupt metal trade. Energy and Mines Minister Jorge Montero emphasized the urgency of the situation, stating that they aim to prevent adverse effects from U.S. policies that may harm their economy.
Countries reliant on exports, like Peru and Chile, are concerned about the implications of the tariffs. Both nations hope their established trade agreements with the U.S. will provide some leverage, given that American buyers rely heavily on imported copper, fulfilling about fifty percent of their needs.
Initially mentioned as a potential tool for trade negotiation in January, President Trump escalated the situation by initiating an investigation into copper tariffs under national security justification. This investigation typically prolongs the decision-making process, giving some temporary reprieve for the industry, yet discussions resurfaced about implementing these tariffs.
Peru primarily exports semi-processed copper to China, while its direct shipments to the U.S. are significant, with Freeport-McMoRan Inc., a U.S. company, operating one of the largest mines in Peru. The situation is more critical for Chile, where Codelco, the state-owned company, is the largest copper exporter to the United States
Minister Montero also mentioned other potential impacts of tariffs on Peru’s exports, such as blueberries and table grapes, and remarked on Peru’s strategic role as a trade ally. He highlighted the country’s openness to investments and business engagement, reinforcing that Peru does not align strictly with any geopolitical agenda.
Peru’s proactive approach in forming a delegation to the U.S. underscores its commitment to protecting its vital copper export sector amidst potential tariffs. Minister Jorge Montero’s comments reflect the delicate balance between U.S. interests and Peru’s need to maintain its trade relationships. As global trade dynamics change, Peru aims to navigate these challenges while reaffirming its position as a strategic partner open to diverse investments.
Original Source: business.financialpost.com
