Mining Corporation, Anglo American, Experiences Revenue Drop Due to Trump's Trade Barrier Chaos
In the ever-changing landscape of global trade, Anglo American, a prominent FTSE 100 mining company, is navigating the challenges posed by President Donald Trump's tariff policies.
The company's focus has shifted towards copper production, a strategic move in light of the increased US refined copper imports by 127% in the first five months of the year. This trend has drawn copper away from traditional demand centres in Asia and Europe, potentially impacting Anglo American's sales.
Duncan Wanblad, Anglo American's chief executive, announced a plan to double down on making $1.8bn in cost savings. This move is aimed at maintaining the company's financial stability amidst the tariff-induced market uncertainties.
In the first half of 2025, Anglo American was affected by Trump's policy changes, particularly the 50% tariff on imported copper announced in July. While the tariffs pushed copper prices dramatically higher, potentially benefiting copper producers through increased revenues, the specific financial impacts on Anglo American have not been detailed in the available data.
The U.S. copper supply chain remains limited in smelting capacity and heavily reliant on foreign processing. The tariffs' intent to boost domestic production may have complex supply chain effects that could influence Anglo American's sales and profit margins.
Despite the challenges, Wanblad remains optimistic, emphasising that Anglo American's actions are transforming the company into a highly attractive and differentiated value proposition for the long term. He also highlighted the company's strong cash generation, capable of supporting sustainable shareholder returns.
Anglo American's underlying earnings fell by 20% in the same period, and the company expects its total portfolio to decrease by $100m in 2025, to $3.1bn in 2026 and 2027. The company's turnover dropped by 7% to nearly $9bn (£6.7bn) in the first half of 2025 compared to the same period last year.
However, there is a glimmer of hope. Wanblad expressed hope that a boost in demand in China could help rebuild Anglo American's sales. This optimism is supported by the fact that China is the world's largest consumer of copper, accounting for over half of global consumption.
In a surprising turn of events, Trump announced exemptions for refined copper materials from 50% tariffs on semi-finished products. This move could potentially ease some of the pressure on Anglo American and other copper producers.
Despite the challenges, Anglo American is focusing on its exceptional copper, premium iron ore, and crop nutrients resources to unlock value for shareholders. The company's diamond operation through De Beers has been affected by a challenging trading environment, leading to a delay in its recovery.
In conclusion, Anglo American, like many global companies, is grappling with the complexities of President Trump's tariff policies. The company is adapting its strategy to navigate these challenges, focusing on cost savings, strategic resource management, and potential market opportunities. The future remains uncertain, but Anglo American's resilience and strategic vision offer hope for sustained growth.
In light of President Donald Trump's tariff policies, Anglo American, a prominent FTSE 100 mining company, is making strategic moves to maintain its financial stability in the industry. The company's plan to double down on cost savings and focus on copper production shows a shift towards markets with potential growth, such as the US, where refined copper imports have increased significantly.
However, the tariffs' intent to boost domestic production may have complex supply chain effects that could influence Anglo American's sales and profit margins, particularly in traditional demand centres like Asia and Europe. This uncertainty in the business environment, coupled with the tariffs' potential impacts on the company's sales, underscores the challenges Anglo American faces in the realm of politics and finance.
