Chile pushes back against Trump copper tariff probe

Copper imports from Chile, the top supplier of the metal to the United States, do not threaten U.S. security interests, the Chilean government said in a letter to President Donald Trump's administration, which is considering tariffs on the metal needed for electric vehicles and myriad industrial uses. 

Trump ordered a probe in February under the Section 232 national security provision of the Trade Expansion Act of 1962, the same U.S. law he used in his first term to impose 25% global tariffs on steel and aluminum.

The Chilean government expressed its anti-tariff stance in a letter to the U.S. Commerce Department dated March 31 that is now publicly available on a U.S. federal website.

"Copper imports from Chile contribute to the United States' supply chain security and do not represent any risk to its national security interests," Chile's ambassador in Washington, Juan Valdes wrote.

The Trump administration has not detailed any results thus far of the February investigation, which seeks to curb China's influence in the global copper market. Section 232 probes need to be completed within 270 days of their initiation.

Chile accounts for about a quarter of global copper supply, making it the world's biggest producer. The majority of its exports go to China. Its imports to the United States are covered by a free trade agreement in effect since 2004. 

The American Chamber of Commerce in Chile said that Chilean copper imports provide security and economic benefits to the United States, and that tariffs could wind up benefiting China.

"The playing field is leveled, and tariffs on Chilean copper would only serve to make Chile's copper exports more attractive to China, ultimately weakening the economic and security interests of the United States," Paula Estevez, CEO of the group, said in a letter dated March 31 and also available on the U.S. federal website.