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Investing.com -- Freeport-McMoran (NYSE: FCX) stock fell as much as 5% Monday before paring the decline to 3% as Chile’s Finance Minister expressed optimism about securing an exception to potential U.S. copper tariffs.
Chilean Finance Minister Mario Marcel indicated during a Radio Duna interview that he expects copper to be excluded from U.S. tariff plans during ongoing negotiations in Washington. Marcel noted that similar exceptions have been made for raw materials in other trade agreements, citing precedents with the United Kingdom (TADAWUL:4280) regarding steel and Indonesia concerning copper.
"We expect these conversations starting today in Washington to also cover the copper issue, because it wouldn’t be very useful to have a trade agreement that excludes more than half of our exports to the U.S., such as copper and wood," Marcel stated.
The potential 50% tariff on copper imports to the United States has created uncertainty for major producers like Freeport-McMoran, which operates significant copper mining assets globally. The Chilean government’s stance appears focused on diplomatic solutions rather than retaliatory measures.
Marcel explicitly ruled out implementing counter-tariffs on U.S. imports, explaining that "a tariff is a tax on imports that local consumers have to pay... We are not going to punish our taxpayers by applying a tariff on imports from the U.S."
The outcome of these negotiations remains crucial for Freeport-McMoran and the broader copper market, as Chile represents one of the world’s largest copper producers. Any resolution regarding the proposed tariffs could significantly impact global copper trade flows and pricing.