Trump Copper Tariffs Spark Concern

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President Donald Trump stated on July 8 that he plans to impose a 50% tariff on copper imports, sparking concern in a global industry whose output is critical to electric vehicles, military hardware, semiconductors, and a wide range of consumer goods. According to Yahoo Finance, copper futures climbed over 2% following tariff confirmation.

Trump did not state when he planned to introduce the new tariffs, but on July 8, Commerce Secretary Howard Lutnick said that they would likely implement the duties by the end of July or Aug. 1, Reuters reported.

Trump ordered a probe in February into possible copper tariffs, citing a November deadline as part of efforts to rebuild U.S. production of the metal. However, it was unclear if the investigation into imports of raw mined copper, concentrates, alloys, scrap, and derivatives had finished.

The U.S. produces just over half the refined copper it uses annually, much of which comes from Arizona, where a stalled major mine expansion has lasted for more than a decade. The U.S. imports the rest—just under 1 million metric tons—because it only has two primary smelters compared to China’s dozens.

While the White House framed the new tariffs as a way to counter China's dominance of the global market, the U.S. imports most of its refined copper from the Americas. According to the U.S. Geological Survey (USGS), in 2023, Chile, Peru, and Canada made up more than 90% of U.S. copper imports.

While China leads in copper refining, it too depends largely on Latin America and Africa for raw materials. Chile and Peru accounted for roughly one-third of global copper mining in 2024.