Trump orders new tariff probe into US copper imports
The President Donald Trump launched a new front in his attack on global trade norms on Tuesday, ordering an investigation into possible new tariffs on imports of copper to rebuild U.S. manufacturing of a critical metal for electric vehicles, military equipment, the power grid, and consumer goods.
In an effort to stop what his advisors viewed as China's move to dominate the copper market in the world, Trump signed at the White House an order directing Commerce Secretary Howard Lutnick, to launch a national-security probe under Section 223 of the 1962 Trade Expansion Act. This is the same law Trump invoked in his first term, to impose global tariffs of 25% on steel and aluminium.
According to a White House official who spoke on condition of anonymity with reporters, any tariff rate that may be applied will depend on the outcome of the investigation. Trump also stated his preference for tariffs as opposed to quotas.
Peter Navarro, White House Trade Advisor, said that the investigation will be finished quickly "in Trump's time."
Navarro stated that China is using its state subsidies and economic power to control global copper production in the same manner it currently dominates steel, aluminum and other metals.
According to U.S. Census Bureau statistics, Chile, Canada, and Mexico were the three countries that supplied the most refined copper and copper products in 2024.
Lutnick stated in a press release that "like our steel and aluminium industries, our great American industry of copper has been decimated" by global actors who have attacked our domestic production. "To rebuild our copper industry, i will investigate possible tariffs."
Lutnick stated that the U.S. national defense and industries depend on copper, and "it must be made in America. No exceptions, no exclusions."
Lutnick stated that it was time to bring copper home.
An official at the White House said that the investigation would examine imports of copper concentrates, copper scrap, copper alloy and derivatives made from metal. The official refused to name any derivatives because it would prejudice the investigation.
Officials from the Department of Energy said that copper was a material of critical importance in the medium-term due to the increased demand for solar technologies and global electricification. They also noted that it is the second most commonly used material on U.S. weapon platforms.
According to the official, based on the current demand for electric cars and power-hungry applications such as artificial intelligence, the United States will face a copper shortage in the near future. The United States can't develop an adequate capacity for copper smelting or refining unless it has a reasonable assurance of long-lasting protection for this sector.
Freeport-McMoRan in Phoenix, the largest copper producer in the world with operations throughout the United States as well as Latin America and Indonesia did not respond immediately to a comment request on Trump's orders.
In its seven U.S. mines, the company produced 1,26 billion pounds copper in 2012. This copper is all consumed in the United States. Freeport operates only one of two U.S.-based copper smelters. Freeport operates Indonesia's Grasberg mine, the largest copper mine in the world, but its entire output is exported to Asian clients.
Trump's latest move to build a wall of tariffs around the U.S. economic system is part of his efforts to rebuild the long-diminishing U.S. manufacturing sector and to redraw decades worth of trade relations. Trump announced on Monday that the 25% tariffs on Canada and Mexico imports were "on track" to be implemented by March 4, despite both countries' efforts to avoid the tariffs by securing the U.S. border and stopping the flow of deadly opioid fentanyl.
(source: Reuters)
