Peru is preparing a delegation to meet with US officials to address proposed copper tariffs by the Trump administration, emphasizing the need to protect its economic interests. Energy Minister Jorge Montero highlighted Peru’s strategic relationship with the US while also noting its openness to global trade partnerships. The potential tariffs evoke concerns for export-dependent nations like Peru and Chile.
Peru, as the world’s third-largest copper supplier, is proactively addressing potential copper tariffs imposed by the Trump administration by dispatching a delegation to engage with US officials. Energy and Mines Minister Jorge Montero articulated Peru’s intention to navigate the rapidly changing trade landscape, emphasizing the need to mitigate adverse effects from US regulatory measures.
The implications of these tariffs are significant, with countries like Peru and Chile advocating that free-trade agreements with the US and existing trade balances should protect them. Notably, the United States relies heavily on imported copper, with approximately half of its requirements sourced externally. March’s introduction of the evaluation for copper tariffs has created uncertainty, although it originally provided some temporary reprieve due to the expected length of the investigation process.
While Peru exports some copper to the United States, most of its shipments are directed towards Chinese smelters. US company Freeport-McMoRan Inc. owns Cerro Verde, one of Peru’s prominent mines. In contrast, Chile faces more direct exposure due to state-owned Codelco’s position as the leading copper supplier to the US market. Montero, however, refrained from addressing the potential impact on other Peruvian exports, such as blueberries and table grapes.
Emphasizing Peru’s strategic positioning, Minister Montero stated, “Peru is a good strategic ally for the US on business issues, but not just for the US. Peru is a non-aligned country, one that’s open to investments and business with everyone. We are not committed to a particular geopolitical vision.”
In conclusion, Peru is taking proactive measures to engage with US officials to address the impending copper tariffs announced by the Trump administration. With concerns about the tariffs’ impact on trade relations, Peru is emphasizing its status as a reliable trade partner, positioning itself as accessible for investments while advocating for its economic interests amid shifting geopolitical dynamics.
Original Source: business.financialpost.com
