By David Lawder and Andrea ShalalWASHINGTON (Reuters) – President Donald Trump of the United States took a significant step on Tuesday in his ongoing battle against global trade standards, initiating a clandestine investigation into potential new tariffs on copper imports. The aim is to revive U.S. production of this vital metal essential for electric vehicles, military equipment, semiconductors, and various consumer goods.Trump’s decision is in response to concerns raised by his advisors regarding China’s alleged efforts to dominate the global copper market. He signed an order instructing Commerce Secretary Howard Lutnick to commence a new national security probe under Section 232 of the Trade Expansion Act of 1962. This is the same legislation Trump previously utilized to impose 25% tariffs on steel and aluminum during his first term.A senior White House official disclosed that the specific tariff rate, if any, will be determined as a result of the investigation and that Trump favors tariffs over quotas. Trade advisor Peter Navarro stated that the inquiry would be conducted swiftly, in what he referred to as “Trump time.”Navarro highlighted China’s purported use of state subsidies and economic influence to secure control over global copper production, mirroring its dominance in steel and aluminum production. Countries likely to be most impacted by potential U.S. copper tariffs include Chile, Canada, and Mexico, the top suppliers of refined copper and copper articles in 2024 according to U.S. Census Bureau data.”Similar to our steel and aluminum sectors, our esteemed American copper industry has suffered greatly due to international entities hindering our domestic production,” stated Commerce Secretary Howard Lutnick. He emphasized the necessity for domestic copper production, asserting, “Copper should be manufactured in America without exemptions or exceptions.””The time has come for copper to return home,” Lutnick declared.The investigation will scrutinize imports of raw mined copper, copper concentrates, copper alloy, scrap copper, and derivative products crafted from the metal. The Department of Energy recognizes copper as a critical material in the medium term due to escalating demand for solar energy technologies and global electrification. Notably, copper ranks as the second most widely utilized material in U.S. weapons platforms.The White House posited that due to the rising demand for electric vehicles and power-intensive artificial intelligence applications, the U.S. will face a copper shortage in the future. Developing sufficient copper smelting and refining capacity is contingent upon ensuring prolonged trade protection for the sector.The move aligns with Trump’s overarching strategy to fortify the U.S. economy by imposing tariffs and revitalizing the long-declining domestic manufacturing sector. Trump reaffirmed that the separate 25% tariffs on imports from Mexico and Canada are proceeding as planned despite efforts by both nations to avert them by bolstering border security and combatting the flow of fentanyl, a lethal opioid.(Reporting by David Lawder and Andrea Shalal; Editing by Dan Burns)
The task remains incomplete.
