SANTIAGO (Reuters) -Copper production from Chilean state-run miner Codelco ticked up some 16.5% year-over-year in May, data from copper commission Cochilco showed on Thursday, climbing to 130,100 metric tons.

For Chile, the US market accounts for less than 13% of total copper exports, but the impact of the tariffs goes far beyond mere trade volumes. Copper exports remain Chile's largest source of foreign exchange earnings, totaling $50.86 billion in 2024.

President Trump wants America to produce more of the much-needed mineral, but a 50 percent tariff could undermine his aim of a manufacturing renaissance.

President Donald Trump announced a 50% tariff on copper imports on Tueday, a move aimed at bolstering domestic production and reducing U.S. reliance on foreign supplies, particularly from Chile, which accounts for nearly 35% of U.S. copper imports.

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Chilean copper mines had their best month of export revenue in more than three years in June, with the increase in value outstripping price gains in a sign of rising production.

This year, BMI estimates global copper mine output to rise 2.5% as production in Chile recovers and the giant Oyu Tolgoi mine in Mongolia ramps up. Those in Peru, Russia and Zambia will also remain among the major contributors, it adds.

U.S. President Donald Trump's 50% tariff on copper has placed a record premium on prices of the metal in the United States that is likely to ease over the coming months as a stockpile created by traders anticipating the levy works through the system.