US-China trade tensions tighten global copper supply
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Trade disputes between the US and China, on top of a fractured global economy, are worsening copper shortages, top mining executives are warning.
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Upper bench of the open-pit mine at the Cobre Panama copper mine during a press tour of the mine, in Donoso, Panama, Friday, March 21, 2025 (AP)
A growing rift between the United States and China, coupled with broader global economic fragmentation, is intensifying copper supply shortages, the Financial Times reported on Monday, citing leading mining and metallurgical executives.
Robert Friedland, founder of Canadian mining company Ivanhoe Mines, said that escalating trade tensions are increasing equipment costs and delaying key mining projects. He warned that the world faces a major copper shortage by the end of the decade.
“We’re seeing a breakdown in the international order. These tensions are Balkanizing the world economy, and we see it in the copper industry,” Friedland told Financial Times.
Maximo Pacheco, chairman of Chile’s state-owned miner Codelco, added that the global copper market is already short on supply. To strengthen efficiency, Codelco recently acquired a minority stake in I-Pulse, a technology company co-founded by Friedland that specializes in energy-saving innovations for the mining sector.
“We need new technology in order to improve our competitiveness and our cost structure,” Pacheco said.
Growing prices amid widening rift
Reflecting ongoing concerns over tightening supply, copper prices rose about 2% at the start of the week.
The trade tensions deepened on Friday when US President Donald Trump threatened to impose a 100% tariff on Chinese goods by November 1, citing Beijing’s “aggressive position on trade.”
In response, China’s Commerce Ministry announced that it would introduce export controls beginning November 8 on several strategic products, including rare-earth metals, lithium batteries, and ultra-high-strength materials, a move that could further disrupt global supply chains.
China postpones talks with the United States
China has postponed a proposed phone call with the United States following Washington’s outreach over Beijing’s latest export restrictions, US Trade Representative Jamison Greer said Sunday.
“As soon as we learned about this from open sources, we approached the Chinese side with a proposal for a phone conversation, but they postponed it,” Greer told Fox News.
The delay follows new developments in the US-China trade standoff, as tensions mount over Beijing’s tightening control of critical exports.
Greer said Sunday that Washington learned of China’s new export restrictions from public sources, not through official channels, warning Beijing will face “consequences.”
He added that despite rising tensions, a meeting between Presidents Trump and Xi could still occur, emphasizing there remains “room for off-ramps” to restore stability in trade relations.
