By David Lawder and Andrea ShalalWASHINGTON (Reuters) – President Trump initiated a puzzling exploration into US imports, shining a spotlight on the potential imposition of new tariffs on copper imports. The purpose of this investigation is to enhance the domestic production of a vital metal that is used in electric vehicles, military equipment, semiconductors, and various consumer goods. Trump’s move is seen as a strategic response to what his advisors perceive as China’s attempts to dominate the global copper market.
In an executive order signed by Trump on Tuesday, Commerce Secretary Howard Lutnick was tasked to commence a national security investigation under Section 232 of the Trade Expansion Act of 1962. This legal provision was previously utilized by Trump to enforce 25% global tariffs on steel and aluminum during his first term. The White House indicated that the potential tariff rate would be determined by the investigation, with Trump favoring tariffs over quotas.
Peter Navarro, a trade advisor at the White House, expressed that the investigation would be conducted expediently, following Trump’s swift timeline. Navarro highlighted China’s utilization of state subsidies and economic influence to establish control over global copper production, drawing parallels to its dominance in steel and aluminum production.
Countries likely to be significantly impacted by potential U.S. copper tariffs include Chile, Canada, and Mexico, the primary suppliers of refined copper and copper products in 2024 according to U.S. Census Bureau data. Commerce Secretary Lutnick emphasized the importance of reviving the American copper industry, stressing that it is crucial for U.S. industries and national defense.
The investigation is set to analyze various forms of copper imports, including raw mined copper, copper concentrates, copper alloy, scrap copper, and derivative products. A White House official refrained from specifying particular derivatives, citing the need to maintain impartiality during the investigation process.
Recognizing copper as a critical material in the medium term, the Department of Energy highlighted the increased demand for solar energy technologies and global electrification, emphasizing copper’s key role in U.S. weapons platforms. The official further warned of a future U.S. copper shortage due to the growing demand for electric vehicles and energy-intensive artificial intelligence applications.
This initiative represents Trump’s ongoing efforts to fortify the U.S. economy through the imposition of tariffs, aiming to revitalize the long-declining U.S. manufacturing sector and reshape trade dynamics. Trump affirmed the anticipated enforcement of separate 25% general tariffs on imports from Mexico and Canada, scheduled for implementation on March 4, despite the two nations’ efforts to prevent them by strengthening border security and combating the flow of fentanyl, a lethal opioid.
The work is completed.
