Freeport-McMoRan Capitalizes on Potential U.S. Copper Tariffs
Investing.com – Leading North American copper producer Freeport-McMoRan Inc. (NYSE:FCX) is strategically leveraging potential U.S. tariffs on copper imports to command higher prices for its metal. However, CEO Kathleen Quirk cautioned that extensive tariffs might adversely impact the industry that the government intends to bolster.
In a recent discussion at Freeport’s Phoenix headquarters, Quirk highlighted the challenges posed by potential disruptions in global economic growth on copper prices. She underscored the company’s ongoing commitment to fortifying the U.S. copper sector, noting that slowing GDP growth and inflation could place considerable pressure on domestic mining operations.
Quirk, aged 62, recognized the advantages presented by the copper tariff in a May 29 interview, stating it enabled the company to secure higher domestic pricing for copper. Yet, she expressed apprehension regarding the potential ramifications of extensive tariffs and ensuing trade conflicts on international copper demand.
Adopting a balanced view on copper tariffs, Quirk acknowledged both the potential benefits and the challenges that might emerge if tariffs were levied on copper imports. She cautioned that an ensuing trade war from such tariffs could detrimentally affect demand for the metal, which Freeport also produces in countries like Indonesia, Spain, Peru, and Chile.
Despite these concerns, Quirk voiced support for initiatives meant to rejuvenate the U.S. copper industry and foster increased domestic output. Freeport is advocating for additional incentives to boost copper mining in the U.S., suggesting tax credits similar to those in the Inflation Reduction Act, already offered to lithium and nickel miners.
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