US President Donald Trump has signed an executive order directing the US Department of Commerce to examine possible copper tariffs, the latest in a string of measures aimed at imposing sector-specific levies that could reshape global supply chains.
Trump said the order would have a “big impact” as he signed it in the Oval Office, joined by US Secretary of Commerce Howard Lutnick.
Senior administration officials earlier on Tuesday cast the step as necessary to address what they said was a national security issue. They argued that dumping and overcapacity in world markets had impacted domestic US copper production, leaving weapons systems and other critical products dependent on imports.
Photo: Abaca/Bloomberg
The officials, briefing reporters on condition of anonymity, said it was premature to discuss a potential rate for the tariffs.
Copper is a critical material for modern economies because of its widespread use in the wiring that delivers electricity to homes and factories. Many analysts forecast higher prices this decade, as supply fails to keep pace with demand. As with other metals, China’s grip is particularly strong when it comes to processing — the country accounted for about 44 percent of the world’s refined copper last year, according to the US Geological Survey.
The investigation would be carried out under Section 232 of the Trade Expansion Act, which gives the US president broad authority to impose trade restrictions on domestic security grounds.
Trump is also employing that authority to impose 25 percent tariffs on two other industrial metals — steel and aluminum — with those levies slated to take effect next month.
Lutnick said in a statement that the action would also probe products that include copper, and said the administration aimed to rejuvenate the domestic copper industry.
“Like our steel and aluminum industries, our great American copper industry has been decimated by global actors attacking our domestic production,” Lutnick said. “Tariffs can help build back our copper industry, if necessary, and strengthen our national defense.”
Peter Navarro, a Trump trade adviser, singled out China, saying it had “long used industrial overcapacity and dumping as an economic weapon to dominate global markets, systematically undercutting competitors and driving rival industries out of business.”
The US consumed about 1.6 million tonnes of refined copper last year, according to the US Geological Survey.
While the US has significant mines, producing about 850,000 tonnes of primary copper last year, it still relies on imports from key trade allies to fill the need.
Chile is the largest import source, accounting for 38 percent of total import volumes, followed by Canada and Mexico at 28 percent and 8 percent respectively.
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