Copper tariffs offer mixed blessing for industry

US copper tariff threats have created a lucrative windfall for Freeport-McMoRan Inc., America’s largest copper producer, though the company’s CEO warns that comprehensive trade barriers could ultimately damage the very industry President Donald Trump seeks to strengthen.“If global growth is disrupted, that could lead to an impact on copper prices,” CEO Kathleen Quirk told Bloomberg News during an interview at the company’s Phoenix headquarters. “Ironically, if we’re trying to build up the US copper industry, slowing GDP growth and inflation could put a lot of pressure on mines here.”The tariff speculation has created a substantial price differential, with US copper trading approximately 9.3% above London Metal Exchange rates. This premium previously reached 13% in April, translating to roughly $800m in annual financial benefits for Freeport’s copper sales, according to Bloomberg News.Trump directed the Commerce Secretary in late February to investigate foreign copper imports under Section 232 of the Trade Expansion Act, with a 270-day deadline for recommendations. This provision grants presidential authority to impose restrictions citing national security concerns.Freeport controls about 70% of America’s processed copper through seven open-pit facilities and one smelter. The pricing advantage encourages traders to direct supplies toward US markets ahead of potential duties.However, Quirk acknowledges the double-edged nature of protection measures. “We do benefit from having a copper tariff because it prices our copper higher domestically,” the 62-year-old CEO told Bloomberg News. “If we have these big tariffs and trade wars, that makes us concerned for global demand for copper.”The company operates internationally across Indonesia, Spain, Peru and Chile, making it vulnerable to retaliatory measures or reduced global consumption.Quirk, who became CEO last year after joining Freeport in 1989, advocates for alternative support mechanisms including tax credits similar to those available for lithium and nickel producers under the Inflation Reduction Act.The post Copper tariffs offer mixed blessing for industry appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com