Mexico is actively seeking an exemption from a proposed 50% tariff on copper imports announced by U.S. President Donald Trump. This tariff could significantly impact Mexican exports, valued at approximately $1 billion annually.
Mexico’s Copper Export Landscape
President Claudia Sheinbaum suggested that the tariff might not apply to Mexican copper exports. Notably, Mexico exports more copper to China than to the United States. In 2024, Mexico’s copper exports to the U.S. totaled $976 million, ranking as the third-largest copper supplier after Chile and Canada.
U.S. Tariff Plans
According to U.S. Commerce Secretary Howard Lutnick, the copper tariff is expected to commence in late July or early August. This measure is part of a series of 50% tariffs that President Trump previously imposed on other imports such as steel, aluminum, lumber, and automobiles from Mexico, even with the USMCA free trade agreement in place.
Diplomatic Efforts
A Mexican delegation, led by Economy Minister Marcelo Ebrard, is scheduled to meet with U.S. officials in Washington. The focus will be on discussing a “global agreement” that encompasses security, migration, and trade. Ebrard has been diligently working to secure exemptions from various U.S. tariffs imposed recently.
Importance of Copper to Mexico
Sonora, a Mexican state, produces approximately 80% of the country’s copper. Copper is vital for several products and industries, such as electric vehicles, military hardware, power grids, and consumer goods. Despite Mexico’s copper exports to the U.S., Sheinbaum stressed that American industries are reliant on international copper sources, including Mexican supplies.
The proposed tariff poses additional challenges, potentially impacting products manufactured in Mexico which use copper imported from Chile and Peru, thereby potentially affecting the competitiveness of Mexican exports.
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