The CEO of the world’s largest mining company, BHP Group, warned on Thursday that a tariff war can slow down the global economy and fragment international trade, while the company reported an increase in copper production, metal used in products ranging from smartphones to electric cars.
US President Donald Trump’s tariff offensive against China has shook the global markets of commoditieswhich depend on international trade and are closely linked to the two largest economies in the world.
Although the US represent only about 3% of BHP revenue, the mining giant is an important iron ore supplier, the main input of steel, for China, and is developing a huge potassium mine in Saskatchewan, Canada.
The company has been moving away from fossil fuels and investing in commoditiessuch as copper and potassium, an input for fertilizers, which should benefit from population growth, raising life standards and transition to low carbon economy.
“Despite the limited direct impact of BHP tariffs, the implications of slower economic growth and a fragmented commercial environment can be more significant,” said CEO Mike Henry on Thursday by publicizing the third-quarter production results.
Some economists expect China’s growth to slow down to 4% or less this year, which would represent its weaker expansion in decades, excluding the 2020 and 2022 pandemic years. China is the largest buyer of several commodities Minerals, including copper and iron ore.
On Thursday, BHP reported a 10% increase in copper production in the third quarter, driven by the largest volume of the hidden giant mine in the Atacama desert in northern Chile.
Hidden production, the largest copper mine in the world, grew 16% over the previous year.
