Peru Engages U.S. Delegation to Address Copper Tariff Concerns

Peru is preparing a delegation to address potential copper tariffs proposed by the Trump administration, which may disrupt trade. Energy Minister Jorge Montero emphasized the need to protect Peru’s economic interests. The nation, highly dependent on copper exports, is leveraging its trade agreements with the U.S. while seeking to avoid being adversely affected by new restrictions.

Peru, recognized as the world’s third-largest copper supplier, is mobilizing a delegation to engage with United States officials. This initiative comes in response to the Trump administration’s announcement of potential copper tariffs that could substantially affect metal trade flows, as highlighted by Energy and Mines Minister Jorge Montero in Lima. Montero articulated concerns regarding the rapidly evolving trade regulations under the new North American administration and emphasized Peru’s intent to protect its interests amid these changes.

The proposed tariffs stem from President Donald Trump’s broader strategy to bolster U.S. manufacturing, primarily affecting trade-dependent nations like Peru and Chile. These nations are banking on existing free-trade agreements and trade deficits as leverage against the tariffs, noting that American industries rely on imported copper for a significant portion of their needs. Although Trump initially discussed copper tariffs in late January, the urgency increased when he launched a national security investigation into these tariffs, which typically prolongs the decision-making process, providing temporary relief.

Notably, a substantial amount of Peru’s copper is exported to the United States, albeit most of it is semi-processed and sent to Chinese smelters. U.S. company Freeport-McMoRan Inc. operates one of Peru’s prominent mines, Cerro Verde. Chile, bearing more direct impact due to its state-owned Codelco being the largest copper exporter to the U.S., faces additional scrutiny.

Montero emphasized Peru’s strategic alliance with the United States in business matters without binding the nation to specific geopolitical positions, asserting that Peru remains open to investments and partnerships globally. He refrained from commenting on the broader implications for other Peruvian exports, such as blueberries and table grapes, which could also be affected by U.S. tariffs.

In summary, Peru is actively seeking dialogue with U.S. officials to mitigate the potential impact of proposed copper tariffs initiated by the Trump administration. The discussions reflect concerns over the changing trade landscape and aim to safeguard Peru’s economic interests, particularly in the copper sector, which is vital to the nation’s trade dynamics with the United States and other countries.

Original Source: business.financialpost.com