BHP sees rising uncertainty for miners on trade as Trump returns

BHP Group, the world’s biggest miner, expects increasing uncertainty in the near term as US President-elect Donald Trump prepares to implement a slew of tariffs and other trade measures.

“In the near term, there is going to be a degree of uncertainty related to trade flows, tariffs, industrial policy,” BHP chief executive Mike Henry said in a Bloomberg TV interview.

That is “something that we keep a very close eye on specifically in respect to the incoming administration”.

Mining companies across the globe have been spooked by Trump’s plans to slap tariffs on everything from cars to computer chips, and also a the possibility of further trade tensions with China, the single biggest buyer of nearly all metals.

However, Mr Henry added that BHP expects the US to be strong supporter of the mining industry under Trump’s presidency.

“We know there is strong support for mining, strong understanding of the need for security of critical mineral supply chains,” he said.

“Exactly how that plays out in practice and policy is yet to be determined.”

BHP earlier this year tried to buy Anglo-American in a $US49 billion ($77.3b) deal. Mr Henry said good mergers are still few and far between, adding that his focus is BHP’s copper business from its own assets.

Bloomberg