Mexico, Chile Seek New Routes After US Tariff Threat

The United States' proposed 50% tariff on copper imports is pushing Mexico and Chile to reassess their trade strategies. Although the United States remains a major importer, both countries are preparing for a potential global restructuring of the copper supply chain. 

Mexico, the fifth-largest supplier of refined copper to the US, has launched a plan to redirect its copper output to new markets, a strategy that may require increased investment in logistics and stronger trade ties with Asia and Europe. Chile, meanwhile, had already begun implementing a diversification roadmap focused on reducing its reliance on the United States by targeting Brazil, the European Union, and Southeast Asia.

“Chilean copper will continue to find new markets,” said Chilean Foreign Minister Alberto van Klaveren. “It is clear that these measures are cause for concern. The United States will still need copper, as it lacks the capacity to replace the volumes it currently imports from Chile and other countries,” he emphasized.

Both governments are working closely with key industry players, Codelco in Chile, and Grupo México and Southern Copper in Mexico, whose international experience will be key in navigating this shift. According to Codelco President Máximo Pacheco, short-term supply increases are unlikely, reinforcing the opportunity to reposition copper exports toward countries advancing their energy transition goals.

In 2024, Chile accounted for 11% of US refined copper imports, while Mexico contributed about 8%, volumes considered critical for sectors such as infrastructure, energy, recycling, and clean technologies.