On Tuesday, President Trump signed an executive order instructing Commerce Secretary Howard Lutnick to investigate whether the foreign supply and importation of copper threaten the U.S. economy and national security.
White House representatives mentioned that the investigation’s findings could lead to new tariffs on copper, which plays a vital role in manufacturing, construction, military use, and budding technologies like artificial intelligence.
During a call with reporters, White House officials provided limited information, such as the investigation’s timeline, potential tariff rates, or their implementation date. “Trump time,” one official repeatedly mentioned, suggesting swift action.
These potential tariffs aim to shield the American copper industry, which has been reportedly weakened by unfair international trade practices, thereby struggling to remain competitive. Copper is crucial in producing ships, aircraft, and tanks, and the Trump administration emphasized its importance for national defense. They pointed out that geopolitical tensions could disrupt the U.S.’s access to this critical material, needed for electric vehicles and AI technologies.
“Tariffs can fortify our American copper industry and bolster our national defense,” Secretary Lutnick declared. “American industries rely on copper, and it must be sourced domestically—no exceptions.” He advocated, “It’s time for copper to come home.”
Though similar to the anticipated steel and aluminum tariffs, which President Trump plans to reintroduce next month, copper tariffs might increase costs for industries reliant on the metal. This includes automotive, electronic, and telecommunications sectors, alongside construction firms using copper for plumbing and roofing.
These tariffs might also ignite disputes with copper-exporting countries. Chile, the top foreign supplier, exports $4.63 billion worth of copper to the U.S. each year, trailed by Canada, Peru, Mexico, and the Democratic Republic of Congo. Although China is a significant global copper producer, its exports to the U.S. are minimal due to existing tariffs.
White House officials argue that China’s copper production has depressed global prices and that China aggressively acquires copper resources worldwide. Peter Navarro, a senior trade advisor, accused China of deploying industrial overcapacity and dumping to dominate global markets and undermine foreign competitors.
Navarro further stated, “China is employing the same strategy to seize control of global copper markets.”
One Trump administration official noted that the president’s focus on copper stems from his foresight, citing a 1980s interview with Oprah Winfrey where Trump discussed trade matters with Japan. The official suggested this interaction foreshadowed Trump’s approach towards retaliating against nations perceived to be “cheating” the U.S.
President Trump has broadened his tariff threats to encompass steel, aluminum, copper, automobiles, and pharmaceuticals. Earlier this month, he nearly imposed tariffs on Canada and Mexico, criticizing their inadequate efforts to curb drug trafficking and illegal immigration. Though postponed for a month, Trump confirmed this week that tariffs would commence on March 4.
Moreover, Trump’s 10% tariff on Chinese imports prompted reciprocal measures. His administration also aims to overhaul U.S. tariff regulations, aligning them with those of other countries while addressing behaviors he considers unfair.
The copper probe will be conducted under Section 232 of the Trade Expansion Act, empowering the president to impose tariffs for national security. Secretary Lutnick has 270 days to present the investigation’s findings to the president.
According to a recent Citi analysis, copper prices have surged this year, anticipating tariffs and maintaining strong manufacturing activity. In 2024, the U.S. consumed about $17 billion in copper, with nearly 45% being imported, Citi analysts noted.
Reporting assistance provided by Rebecca F. Elliott.
