The escalating US-China trade war is raising alarms across global industries, and copper is no exception.
Ivan Arriagada, CEO of Chile’s Antofagasta, recently warned that rising tariffs could have a long-term negative impact on copper demand, posing risks to the construction industry and the ongoing transition to a green economy.
Speaking at the CESCO copper conference in Santiago, Arriagada highlighted that President Donald Trump’s newly announced tariffs are driving greater financial market uncertainty.
This uncertainty has already caused copper prices to slump sharply, with futures falling below $4.20 per pound, their lowest in four months, according to Trading Economics.
Despite these challenges, Arriagada expressed cautious optimism about the copper market’s supply side.
“Copper is a real commodity, so limited supplies should keep it up,” he said, underscoring that while demand may soften due to economic weakness, supply constraints could provide a critical price cushion.
Copper demand: Technology and green energy offer hope
Arriagada also pointed to emerging technology trends as a potential buffer against falling copper consumption.
In an interview with Reuters, he noted that the rise of data centers, renewable energy projects, and artificial intelligence systems are generating new avenues of demand for copper, offsetting possible declines in traditional sectors like construction and manufacturing.
“AI and advancements in technology create new demands for copper that we could see balancing any shortfalls in more conventional markets,” he said.
Arriagada believes that as companies worldwide shift toward greener technologies and more complex digital infrastructures, copper usage will not only stabilize but could even grow substantially.
Chile positioned to weather tariff storm
Interestingly, Arriagada suggested that the Trump administration’s aggressive trade policies might inadvertently foster a favorable investment climate for copper mining. Chile, the world’s largest copper producer, remains largely unaffected by potential US tariffs on copper imports.
“The US needs our copper,” Arriagada emphasized, pointing out that America imports more than half of its copper supply and maintains a trade deficit with Chile. This economic dependency could help shield Chilean mines like Antofagasta from the worst effects of global trade tensions.
Given these dynamics, Arriagada sees strong growth potential and operational stability for Antofagasta, even as global markets face turbulence.
As the world increasingly embraces electric vehicles, renewable energy, and digital transformation, the outlook for copper — and Chile’s leading role in its supply — remains critical to watch.
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