On February 25, 2025, President Trump signed an executive order calling for an investigation into the national security impact of copper imports under Section 232 of the Trade Expansion Act (fact sheet). The investigation includes copper “in all forms.” Specifically, it will include copper and copper products such as raw mined copper, refined copper, alloys, copper concentrates, scrap, and derivative products made with copper. This development comes from the Trump administration’s national and economic security concerns, including China’s role as a major producer of copper, despite few imports to the United States. The commerce secretary, Howard Lutnick, has 270 days from the date of the order to submit his findings to Trump.
The investigation will assess several factors, such as: the demand for copper in U.S. defense, energy, and critical infrastructure; the effects of foreign government practices on the copper supply and trade; and the feasibility of domestic copper mining, smelting, and refining. This investigation may result in tariffs. Trump launched seven Section 232 investigations during his first term, eventually implementing tariffs for aluminum and steel. Trump reinstated those tariffs earlier this month.
It appears that the primary target of this investigation is China. Peter Navarro, the White House senior counselor for trade, accused China of using industrial overcapacity and dumping to dominate industry markets by driving rivals out of business. He said that China is attempting to do the same with copper. These comments come after an additional 10% tariff was placed on all imports from China. Although Latin America and the Democratic Republic of Congo (DRC) are the world’s biggest copper miners, China secured fourth place through its vast investment in the DRC. China is the world’s largest smelter by far. However, China is only the seventh largest importer of copper to the U.S., bringing in less than $1 billion in 2024; Chile, having imported over $6 billion last year, is situated first.
Trump’s administration is also concerned that the U.S. will face a copper shortage in the future, given the current demand for technologies such as artificial intelligence applications and electric vehicles. The U.S. consumed approximately $17 billion of copper in 2024, with 45% met through imports. According to a White House official, long-lasting, reliable industry protections are required to build domestic copper smelting and refining capacity. How those protections, if any, will look like is uncertain; however, the official told reporters that Trump prefers tariffs over quotas because tariffs are a source of revenue.
Should you have any questions concerning these developments, please contact one of the trade professionals listed here.