Freeport-McMoRan Inc., the largest copper producer in North America, has expressed concerns that potential U.S. tariffs on imported copper—touted by former President Donald Trump as a way to boost the domestic industry—could ultimately do more harm than good.
In late February, Trump directed the U.S. Commerce Department to investigate copper imports under Section 232 of the Trade Expansion Act, with a report due within 270 days. While tariffs might raise domestic prices and offer short-term financial benefits to U.S. producers like Freeport, the company’s CEO warned of longer-term risks.
“If global economic growth slows, copper prices could suffer,” said Kathleen Quirk, President and CEO of Freeport, in an interview. “Ironically, trying to build the U.S. copper industry through tariffs may backfire if it leads to inflation and slower GDP growth.”
Quirk emphasized that tariffs could increase costs across industries heavily reliant on copper, such as automotive, consumer electronics, and residential construction, thereby dampening demand. Despite currently benefiting from higher U.S. copper prices—Comex copper trades about 9.3% above the London Metal Exchange (LME)—the CEO noted this price premium could destabilize if tariffs spark a broader trade war.
In April, the Comex-LME copper premium peaked at 13%, providing Freeport with an estimated $800 million in annual financial uplift. The company operates seven open-pit mines and one smelter in the U.S., accounting for around 70% of the country’s refined copper output.
“We do benefit from the higher domestic price,” Quirk said, “but we’re concerned about long-term demand if tariffs escalate.”
While maintaining a neutral stance on the policy, Quirk advocated for alternative support measures, such as tax incentives found in the Inflation Reduction Act—currently accessible to lithium and nickel miners but not to copper producers. She stressed that the U.S. cost structure is higher than global averages, making copper mining less competitive without government incentives.
“If you want to protect the industry,” she said, “you need to look at how to incentivize it, not isolate it.”
Freeport’s diversified copper operations in Indonesia, Spain, Peru, and Chile leave it partially shielded, but the company maintains that global demand health is critical to sustainable industry growth—tariffs alone cannot ensure that.
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