U.S. President Donald Trump has initiated a new investigation into potential tariffs on copper imports to bolster domestic production, crucial for electric vehicles, military hardware, and consumer goods. This move aims to counter what Trump’s advisers perceive as China’s attempt to dominate the global copper market. Commerce Secretary Howard Lutnick has been tasked with overseeing the probe under Section 232 of the Trade Expansion Act, similar to previous tariffs on steel and aluminum. The investigation will focus on various copper products, addressing supply concerns amid increasing demand for electric vehicles and renewable energy technologies.
Washington:
U.S. President Donald Trump on Tuesday launched another initiative in his attack on international trade standards, mandating a new investigation into potential tariffs on copper imports to revitalize U.S. production of this essential metal for electric vehicles, military equipment, semiconductors, and various consumer products.
Trump, aiming to counter what his advisers interpret as China’s effort to monopolize the global copper market, signed an order instructing Commerce Secretary Howard Lutnick to initiate a new national security investigation under Section 232 of the Trade Expansion Act of 1962, the same regulation that Trump previously employed during his first term to impose a 25% tariff on steel and aluminum imports.
A White House official indicated that the investigation would establish any potential tariff rates, noting that Trump favors tariffs over import quotas.
White House trade adviser Peter Navarro asserted that the investigation would be conducted swiftly, “in Trump time.”
Navarro claimed that China was utilizing state subsidies and economic leverage to dominate global copper production, similar to its current control over the steel and aluminum industries.
Countries likely to be most impacted by any new U.S. copper tariffs would include Chile, Canada, and Mexico, which ranked as the primary suppliers of refined copper and copper products in 2024, according to U.S. Census Bureau data.
“Just like our steel and aluminum sectors, our American copper industry has suffered greatly due to global forces undermining our domestic production,” stated Commerce Secretary Howard Lutnick. “To restore our copper sector, I will investigate the possibility of imposing tariffs.”
Lutnick emphasized that U.S. industries and national defense rely heavily on copper and insisted that “it should be produced in America, with no exemptions or exceptions.”
“It’s time for copper to return home,” Lutnick remarked.
The White House official stated that the investigation would examine imports of raw mined copper, copper concentrates, copper alloys, scrap copper, and other derivative products made from the metal. The official refrained from specifying any particular derivatives, suggesting that doing so would preemptively bias the investigation.
A White House representative mentioned that the Department of Energy considers copper a critical material in the medium term due to the rising demand for solar energy technologies and global electrification, highlighting that it ranks as the second most extensively used material in U.S. military platforms.
The official pointed out that given the current demand for electric vehicles and data-intensive artificial intelligence applications, the U.S. is projected to face a copper shortage in the future. They added that developing sufficient copper smelting and refining capabilities requires a reasonable assurance of enduring trade protections for the industry.
This initiative is part of Trump’s ongoing effort to construct a tariff barrier around the U.S. economy as he seeks to restore the country’s diminishing manufacturing sector and redefine longstanding trade relationships.
On Monday, Trump mentioned that separate 25% tariffs on imports from Mexico and Canada were “on schedule” before a March 4 deadline, despite both countries’ attempts to avert these tariffs by securing their borders and curtailing the flow of fentanyl, the lethal opioid.
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