US "50% copper tariff effective August 1"... Chile, Mexico: "We will seek new markets"

Chile: "The US cannot be self-sufficient... Uncertain if the tariff will materialize"

Mexico: "Copper demand is global... Seeking alternative export options"

Spread of 'early customs clearance' attempts using Hawaii and Puerto Rico

Copper inventory across the US expected to approach 500,000 tons within weeks

Donald Trump, the President of the United States, officially announced on August 1 (local time) the imposition of a high 50% tariff on copper. This follows the previous day's cabinet meeting, during which he had hinted at the imposition of tariffs, and now specified the exact date of enforcement.

President Trump stated on social media on the 9th, "Copper is needed for semiconductors, aircraft, ships, ammunition, data centers, lithium-ion batteries, radar systems, missile defense systems, and even for hypersonic weapons that we are producing in large quantities," adding, "Copper is the second most used material by the Department of Defense." This measure is based on Article 232 of the Trade Expansion Act, which grants the president the authority to restrict imports of items affecting national security.

Major copper suppliers to the US such as Chile and Mexico strongly objected to the tariff plan, indicating a shift to diversify their exports beyond the US market. Alberto van Klaveren, the Foreign Minister of Chile, said, "Chilean copper will continue to seek new markets going forward," and pointed out, "The US still needs copper, but lacks the domestic production capacity to replace imports from Chile and others."

While Chile exports the largest amount of refined copper to the US, the proportion of US-bound shipments represents less than 7% of Chile’s total refined copper exports. Gabriel Boric, President of Chile, also commented, "It is doubtful whether the tariffs will actually be implemented."

Claudia Sheinbaum, President of Mexico—the US’s fifth-largest copper supplier—stated, "There is huge global demand for copper, so there are many possibilities (outside the US)," adding, "It is our responsibility to pursue the best possible negotiations with the US, while also seeking new alternatives for exports."

Meanwhile, as the implementation date has been set, traders are looking for ways to expedite shipments ahead of the tariff. Typically, shipping from Asia to New Orleans, Louisiana, takes over a month, so cargo shipped now has a high likelihood of arriving after the August 1 tariff goes into effect. Whether goods arrive in the US before the tariff start date has become a key variable determining profit and loss.

Accordingly, some traders are employing "alternative routes"—using U.S. territories such as Hawaii and Puerto Rico, which can be reached in a relatively short time—to facilitate early shipments. Market sources expect that copper inventories across the US could reach up to 500,000 tons within the coming weeks.

However, there is attention on whether a similar precedent will be set, as during the first Trump administration when exemptions were granted to goods already in maritime transport at the time of metals tariff implementation.

By Da-yeon Lim, Reporter allopen@hankyung.com