President Donald Trump declared copper a national security priority on February 25, directing Commerce Secretary Howard Lutnick to investigate imposing a 25% tariff on all copper imports.The White House states this action addresses vulnerabilities in domestic copper supply chains and reduces dependence on foreign sources.
Copper prices jumped 5% after Trump suggested the proposed 25% tariff might arrive sooner than expected.The metal serves as an essential component in defense applications, infrastructure projects, and emerging technologies like electric vehicles and artificial intelligence systems.Trump signed the executive order initiating a Section 232 investigation under the Trade Expansion Act of 1962.
This law allows the president to restrict imports deemed harmful to national security interests.
The Commerce Department must complete this investigation within 270 days.The United States currently imports approximately 45% of its copper consumption, creating potential supply vulnerabilities.
Chile supplies 70% of United States refined copper imports, with Canada and Mexico accounting for another 19%.Trump Moves to Add Copper to Metal Tariff List, Prices Surge.
(Photo Internet reproduction)Goldman Sachs analysts predict the tariff will trigger a 50-100% increase in United States copper imports during coming months.
This surge aims to build inventory before tariffs take effect.
The analysts expect United States copper inventories to rise by 200,000-300,000 tons by the end of September.United States Tariffs and the Copper MarketPhysical copper traders already exploit price differences between United States and global markets.
The CME copper contract trades at a premium to the London Metal Exchange, creating profitable arbitrage opportunities.American manufacturers face significant cost increases if tariffs take effect.
Industries relying heavily on copper include automotive manufacturing, electronics production, telecommunications, and construction.
Copper appears in everything from plumbing and roofing to electronic components.The copper investigation follows Trumps aluminum and steel tariffs, which took effect today.
The administration eliminated all country exemptions, expanded product coverage, and set rates at 25% for both metals.The tariffs aim to revitalize domestic metal production capacity that administration officials claim unfair trade practices undermined.
The White House specifically cited Chinas industrial overcapacity and aggressive acquisition of global copper resources as threats to United States interests.Trump intends these measures to strengthen Americas industrial base while reducing dependency on foreign metal supplies that could become unavailable during potential conflicts.