{"id":15080,"date":"2025-02-03T19:22:09","date_gmt":"2025-02-03T19:22:09","guid":{"rendered":"https:\/\/financialrush.com\/?p=15080"},"modified":"2025-02-03T19:22:09","modified_gmt":"2025-02-03T19:22:09","slug":"anglo-boss-warns-trump-tariffs-will-push-up-cost-of-mining-for-years","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=15080","title":{"rendered":"Anglo boss warns Trump tariffs will push up cost of mining for years"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the White House Watch newsletter for free<\/p>\n<p class=\"article__content-sign-up-topic-description\">Your guide to what the 2024 US election means for Washington and the world<\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=a55fbf80-bfd5-4cf2-bad7-77a568d733a9&amp;newsletter-id=65b8fec772badb00166eafc6\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Anglo American chief executive Duncan Wanblad has warned that US President Donald Trump\u2019s wave of new tariffs will push up the cost of mining production for years.<\/p>\n<p>Wanblad\u2019s remarks come as a worldwide trade war threatens to upend the flow of commodities on oil and gas and a range of precious and base metals on which their businesses depend.<\/p>\n<p>Trump\u2019s sabre-rattling sent the stocks of some of the big mining groups lower on Monday with London listed Glencore and <a href=\"https:\/\/www.ft.com\/stream\/27b7bf65-793b-404a-b6c0-45bc883c9dda\" data-trackable=\"link\">Anglo American<\/a> down more than 2 per cent at the close.<\/p>\n<p>Wanblad warned that Trump\u2019s tariffs on Canada and Mexico and threat to <a href=\"https:\/\/www.ft.com\/content\/685c95df-9ccc-4b14-91ef-9f69f586f11f\" data-trackable=\"link\">freeze funding to South Africa<\/a> over a new law that permits expropriation of land in public interest would lead to market volatility and inflation.\u00a0<\/p>\n<p>\u201cOne thing I\u2019m sure of is that under all circumstances, [tariffs] are going to be inflationary. We are going to see the cost of production go up pretty much everywhere as a result of this,\u201d he said.<\/p>\n<p>It remains unclear whether Trump will stick to his plans, however, as Mexico\u2019s President\u00a0Claudia Sheinbaum\u00a0said the tariffs would be suspended for one month after a discussion with the US president. Canada\u2019s Prime Minister Justin Trudeau is also locked in talks with Trump.<\/p>\n<p>The Anglo boss said the near-term impact on mining groups was unclear, depending on the region, the level of the tariff and where the product was bought. \u201cI have no idea what to make of the [Trump] statement, other than we could have all done without it.\u201d<\/p>\n<p>Wanblad\u2019s view on tariffs echoes other mining chief executives, who are all assessing the impact of higher tariffs, particularly on resource-rich Canada, which has reserves of oil and gas and metals such as gold and copper.\u00a0<\/p>\n<figure class=\"n-content-image n-content-image--full\" data-component=\"image-set\"><picture><source media=\"(min-width: 700px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A53822478-14f1-4646-8ab5-e1353e7114e9?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A53822478-14f1-4646-8ab5-e1353e7114e9?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A53822478-14f1-4646-8ab5-e1353e7114e9?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=3 3x\" width=\"2100\" height=\"1500\"\/><source media=\"(max-width: 490px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A4ed44934-3210-44bb-bbff-6768930ead8a?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=1 1x\" width=\"900\" height=\"1200\"\/><\/picture><\/figure>\n<p>Speaking to the Financial Times in January before the tariffs were announced, William Oplinger, the chief executive of aluminium producer Alcoa, said a tax on Canadian imports would mean \u201caluminium prices in the US would be substantially higher\u201d.\u00a0<\/p>\n<p>\u201cUltimately it will be in the price of pick-up trucks and beer cans,\u201d he said. \u201cIt\u2019s really hard to determine how much demand destruction we\u2019ll see\u2009.\u2009.\u2009.\u2009If prices are substantially higher in the US that has to put some downward pressure on aluminium demand.\u201d\u00a0<\/p>\n<p>Duncan Hobbs, an analyst at trader Concord Resources, said the impact of the tariffs would be reflected in the premiums paid by metal users on top of the benchmark exchange price for physical metals in the US. <\/p>\n<p>Analysts at BMO said higher premiums were likely to endure until \u201cCanadian producers and US consumers alike can reroute supply chains to avoid the new duties\u201d.\u00a0<\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image o-teaser--opinion js-teaser\" data-id=\"ba1c81a2-0b5e-4a40-a9f6-35228d958b19\">\n<div class=\"o-teaser__image-container js-teaser-image-container\"><a href=\"https:\/\/www.ft.com\/content\/ba1c81a2-0b5e-4a40-a9f6-35228d958b19\" data-trackable=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\"><\/p>\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2491\/1401\"><img decoding=\"async\" class=\"o-teaser__image\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fwww.ft.com%2F__origami%2Fservice%2Fimage%2Fv2%2Fimages%2Fraw%2Fhttps%253A%252F%252Fd1e00ek4ebabms.cloudfront.net%252Fproduction%252F25f39547-baa1-4eac-b3a7-2cc72fe06c8d.jpg%3Fsource%3Dnext-article%26fit%3Dscale-down%26quality%3Dhighest%26width%3D700%26dpr%3D1?source=next&amp;fit=scale-down&amp;dpr=2&amp;width=240\" alt=\"Illustration of Donald Trump driving a bulldozer with a large rubber stamp on the front spelling \u201ctariff\u201d which has been stamped in red all over the background\"\/><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/aside>\n<p>Practically, that is likely to mean Canadian metals being diverted to Europe and the US importing more from other regions such as Australia, they said.<\/p>\n<p>Such a change would \u201ccreate longer supply chains which will result in a sustained increase in US premiums\u201d.\u00a0<\/p>\n<p>Speaking at the Investing in African Mining Indaba in Cape Town on Monday, South Africa\u2019s mining minister Gwede Mantashe called on African countries to halt mineral exports to the US in retaliation for Trump\u2019s decision to suspend funding aid programmes on the continent.\u00a0<\/p>\n<p>\u201cThey want to withhold funding, but they still want our minerals,\u201d he said. \u201cLet us withhold minerals. Africa must assert itself.\u201d<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/a55fbf80-bfd5-4cf2-bad7-77a568d733a9\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the White House Watch newsletter for free Your guide to what the 2024 US election means for&hellip;\n","protected":false},"author":6,"featured_media":15081,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-15080","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/15080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15080"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/15080\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/15081"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}