In a letter dated March 31 to the US Commerce Department, the Chilean government defined its anti-tariff position, emphasising the importance of trade relations between the two countries.
This correspondence was recently made public on a US federal website, revealing a clear message from Chile’s ambassador to Washington, Juan Valdes, as per a Reuters report.
“Copper imports from Chile contribute to the United States’ supply chain security and do not represent any risk to its national security interests,” he added, underlining the important role of Chilean copper in US supply networks.
Investigations and economic implications
This diplomatic letter comes against the backdrop of the investigation that the Trump administration opened in February to combat China’s increasing clout in the international copper market.
The investigation falls under Section 232, which allows the US to determine if imports pose a threat to national security. The procedure must be completed within 270 days of its initiation.
However, the limited disclosure of results has left international players, including Chile, in ambiguity.
Chile is currently the biggest copper producer globally.
Voices from the private sector
Reflecting on the probable consequences of applying tariffs on Chilean copper, Paula Estevez, CEO of the American Chamber of Commerce in Chile, expressed strong opposition to the notion.
Estevez’s letter, released on the same day as Ambassador Valdes’, emphasised the economic and security benefits of maintaining a tariff-free import policy for Chilean copper.
“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,” Estevez wrote in the letter.
This economic fallout projection implies that tariffs may eventually jeopardise US interests by forcing Chilean exports to other markets, mainly China, undermining the economic benefits of a strong US-Chile trading relationship.
Implications for US national security
The argument that Chilean copper imports endanger US national security is a contentious issue, especially given the reciprocal benefits cited by both the Chilean government and industry representatives.
The consistent supply of copper from Chile allows the United States to maintain a secure and dependable source of this pivotal metal, which is critical for a variety of industries such as electronics, construction, and renewable energy.
As stakeholders in both countries cope with the anticipated changes in trade dynamics, diplomatic attempts to highlight the importance of Chilean copper exports will most certainly increase.
The stakes are high—both economically and politically—as the United States attempts to reduce reliance on foreign suppliers that pose security threats while maintaining the realities of its existing trade partnerships.
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