Next, the copper producers in the U.S. government have levied a large 25 percent tariff on imports to this country. President Donald Trump has proposed a 50% tariff just on copper pipe and wire. This action follows a U.S. investigation under Sec. The section 232 investigation concluded that rising copper imports were a threat to national security.
Copper cathodes, necessary for renewable energy and electric vehicles, among other industries, are at this moment in a warehouse just south of Shanghai. Our investigation found that the increasing quantity of imported copper threatened to injure U.S. domestic production and U.S. national security. In recent comments, Trump suggested he would continue to watch the situation, confirming he could slap on additional tariffs in the future.
In their statement, Trump promised to have Howard Lutnick, the billionaire CEO of Cantor Fitzgerald, provide more reliable news on the domestic copper market. He hopes to see this change by June 2026. This solicitation will go a long way toward deciding what happens next with these harmful tariffs.
Trump stated, “Copper is being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States.” This shows the depths of the administration’s commitment to making sure that the U.S. copper industry stays competitive and secure.
The administration should implement a phased universal import duty on refined copper. It aims to begin at 15% in 2027 and ramp it up to 30% in 2028. These provisions are designed to support the domestic copper supply chain and decrease dependency on foreign imports.
Chile’s Codelco, the world’s biggest copper producer, welcomed the exclusion of cathodes from the tariff provisions. This move prevented them from incurring burdensome costs that would have threatened their operations. The company pointed out that this exclusion provides benefits in favor of Codelco. It’s a win for Chile, too, the world’s top supplier of refined copper to the U.S.
Moreover, BHP runs the world’s largest copper mine in Chile and Antofagasta ships that Chilean copper here to the U.S. The company is in the news for recently announcing plans to develop a controversial copper mine in the U.S. This strategic shift would boost bilateral supply chains and partnerships.
One of the order’s provisions is that 25% of high-quality scrap created in the U.S. be sold domestically. This smart decision helps protect local industries and reduce our over-reliance on imported materials. Analysts at Citigroup said that this decision basically does double favors to Chile and Peru, the world’s No. 1 and No. 2 copper producers.
Gracelin Baskaran commented on the newly announced tariffs, stating, “The newly announced copper tariffs are far from universal tariffs that markets were concerned about.” This lens provides a helpful reminder that protective measures are available. Perhaps for passengers as much as for airlines, they’ll miss the mark—largely not as deep as market analysts first dreaded.