America's Copper Crisis? Trump Tariff Threat Could Blindside U.S. Manufacturers

Yahoo

10-07-2025

The copper tariff drama is heating upand U.S. manufacturers could be the ones holding the bag. If the Trump camp moves forward with a proposed 50% levy on refined copper (not copper products), it's not Chile that paysit's America's own wire, rod, and tube makers. Chile, which supplies roughly 70% of the refined copper imported into the U.S., says it hasn't received formal notice yet. But Mining Minister Aurora Williams made it clear: U.S. manufacturing leans heavily on Chilean copper, prized for its quality and traceability. Santiago is already pushing for an exemption, but for now, the uncertainty is fueling tension across the copper supply chain.
Antofagasta CEO Ivan Arriagada added weight to that concern, noting that a tariff would directly pressure American copper product manufacturers. That's a concern, he said on the sidelines of a mining conference in Chile. For Antofagasta, only about 10% of sales go to the U.S., so it's the buyersnot the minerswho could take the biggest hit. With the U.S. sourcing nearly half of its copper from abroad, domestic buyers may have no choice but to eat the higher costs or pass them along to downstream industries. Some may lean on stockpiles temporarily, but that buffer won't last long if tariffs go live.
That mattersa lot. Especially in a market where copper isn't exactly in surplus. Arriagada warned that volatility could rise, even without policy shocks, due to lingering supply tightness. For copper-reliant companies like Tesla (NASDAQ:TSLA), any input cost increaseeven if short-termcould squeeze margins or force supply chain pivots. As talks between Chile and the U.S. continue, investors would be wise to monitor not just the tariff headlines, but also how they ripple through critical sectors tied to electrification, infrastructure, and industrial reshoring.
This article first appeared on GuruFocus.