President Donald Trump has initiated an investigation into possible tariffs on U.S. copper imports, citing a need to bolster domestic production and protect national security. This marks the latest development in Trump’s ongoing tariff actions that have affected both allies and adversaries, including the steel and aluminum industries, potentially reshaping global supply chains.
The proposed copper tariffs could create tensions with Chile, the largest supplier of copper to the U.S., which accounts for roughly 35% of imports, as well as Canada. On Tuesday, Trump signed an executive order directing the Commerce Secretary to examine the impact of copper imports on U.S. trade.
Trump emphasized the importance of tariffs to revitalize the American copper industry and enhance national defense, stating on his Truth Social platform, “Tariffs will help build back our American Copper Industry, and strengthen our National Defense.”
Commerce Secretary Howard Lutnick echoed these sentiments, saying, “Our great American copper industry has been decimated by global actors attacking our domestic production,” and affirmed that an investigation into the imposition of tariffs would be conducted.
The U.S. increasingly relies on copper imports to meet domestic demand, with the metal being vital for military hardware and industries such as artificial intelligence and data centers. Lutnick remarked, “It’s time for copper to come home.”
The investigation will be carried out under Section 232 of the Trade Expansion Act, which has previously been used to justify tariffs on steel and aluminum imports. The inquiry will assess whether the import of copper undermines U.S. national security, though there is no timeline for the completion of the probe or the potential implementation of tariffs.
The U.S. produces a fraction of the copper mined and refined by countries like Chile and China, and while it has substantial copper reserves, it lacks the necessary smelting and refining capacity. Senior counselor for trade and manufacturing, Peter Navarro, accused China of leveraging industrial overcapacity and dumping practices to control the global copper market.
Trump has previously implemented and postponed sharp tariff hikes on key trading partners, including Canada and Mexico.
