New U.S. tariffs will have limited impact on Peruvian exports

Photo: ANDINA/Juan Carlos Guzmán

Photo: ANDINA/Juan Carlos Guzmán

02:58 | Lima, Jul. 20.

The President of the United States, Donald Trump, announced a new package of tariffs on strategic assets. Among these is copper, which will face a 50% tariff for those exporting this metal to the North American country.

Although this measure could have harmful effects given that the red metal is significant for Peru as one of its most exported minerals, the final impact on the economy is expected to be limited.

This is because, while copper exports are important for the public treasury, the volume sent to the U.S. is not very high.

"Despite the initial impression of a significant impact, given that Peru is the world's second-largest copper producer, the effect is limited. This is because approximately 70% of Peru's mineral exports, including copper, are destined for China, not the United States," Deputy Manager of Top-Down Investments at AFP Integra, Alvaro Melendez, told Andina News Agency.

"Only around 13% of Peru's exports go to the United States, which accounts for 3.3% of Peruvian Gross Domestic Product (GDP)," he added.

Melendez explained that the total impact of the tariffs (10% on general products, announced in April, and 50% on copper) translates into an effective aggregate tariff of 14.4% on Peru's exports to the U.S.

However, various analysts have agreed that exports to the United States consist mainly of agricultural products, which would not cause a significant imbalance in export volumes or in the total value exported by the end of the year.

"Peru's dependence on exports to the United States (3.3% of GDP) is lower than that of other countries in the region, such as Chile (5%), Colombia (4.5%), Ecuador (7%), or Mexico (27%). Diversification toward China has mitigated the impact," the expert noted.

Markets

Regarding the impact that this round of tariffs will have on local markets, no major movements are expected either, although a moderate level of uncertainty is projected to persist for an extended period.

"After the tariff extensions or pauses and the trade agreements under Trump, calm returned to the markets, and the U.S. economy remained strong as a global engine," the Deputy Manager stated.

"Stocks have recovered to pre-April levels, interest rates have decreased, and the dollar has maintained a weakening trend due to the diversification of investments outside the U.S.," Melendez explained.

"As for the local stock market, the outlook is generally positive due to declining inflation, which allows for lower interest rates and supports asset revaluation. However, the main risks going forward are the uncertainty surrounding Trump's future actions and the potential inflationary impact of the tariffs, although this is expected to be a temporary effect," he concluded.

(END) GDS/MVB

Published: 7/20/2025