Trump orders new tariff probe into US copper imports

President Donald Trump escalated his challenge to global trade norms by initiating an investigation into potential new tariffs on copper imports, on Tuesday. The move aims to boost U.S. production of the metal, which is essential for electric vehicles, military equipment, the power grid, and various consumer products.

In an effort to counter what his advisers view as China’s push to dominate the global copper market, Trump signed an order at the White House instructing Commerce Secretary Howard Lutnick to launch a national security investigation under Section 232 of the Trade Expansion Act of 1962. This is the same legislation he previously used to impose 25% tariffs on steel and aluminum during his first term.

A White House official, speaking anonymously to reporters, stated that the investigation would determine any potential tariff rate, noting that Trump favored tariffs over quotas.

Trump’s latest move continues his efforts to dismantle decades of business-backed free trade policies, which he criticized both as a candidate and during his presidency for weakening the U.S. industrial sector. This shift now targets long-standing U.S. allies such as Canada and Mexico, in addition to geopolitical rivals like China.

Since returning to the White House last month, he has issued a series of tariff directives. While a new 10% tariff on all Chinese imports is already in effect, 25% duties on goods from Canada and Mexico are set to begin next week. Additional tariffs on steel, aluminum, and automobiles are either imminent or being rapidly developed.

Trump’s aggressive trade policies have started to impact consumer confidence, which had initially risen after his November election victory over former President Joe Biden, fueled by his promises to reduce living costs. However, on Tuesday, the Conference Board reported the steepest decline in consumer confidence in three and a half years, as households brace for a potential rise in inflation.

Ahead of the copper announcement, stocks fell on Wall Street for a fourth straight day, a drop pinned on growing uncertainty about Trump policies on trade in particular.

But there were pockets of upside among perceived winners: Shares of the world’s largest copper producer, Phoenix-based Freeport-McMoran shot up 5% in after-hours trading. The company, which produced 1.26 billions of copper in the U.S. last year, did not immediately respond to a request for comment.

London-based Antofagasta declined to comment on Trump’s action. The company is trying to develop the $1.7 billion Twin Metals copper and nickel mine in Minnesota, but saw its mineral rights blocked under former president Biden’s administration over water pollution concerns.

Trump has vowed to ease regulations on businesses to boost U.S. economic growth.

Targeting China

White House trade adviser Peter Navarro said the investigation would be completed quickly, “in Trump time.”

Navarro said China was using state subsidies and excess capacity to undermine competition and gain control over global copper production, in much the same way it now dominates steel and aluminum production.

That said, the countries set to be most affected by any new U.S. copper tariffs would be Chile, Canada and Mexico, which were the top suppliers of refined copper, copper alloys and copper articles in 2024, according to U.S. Census Bureau data.

“Like our steel and aluminum industries, our great American copper industry has been decimated by global actors attacking our domestic production,” Lutnick said during the White House signing session, vowing to end unfair trade practices that have put Americans out of work.

“American industries depend on copper, and it should be made in America, no exemptions, no exceptions,” he said. “It’s time for copper to come home.”

A White House fact sheet said the investigation would assess the national security risks from growing U.S. dependence on imported copper “in all its forms,” citing data showing the U.S. depended on imports for 45% of its copper consumption last year, up sharply from the early 1990s.

The White House official said the investigation, which also includes the U.S. Trade Representative’s office, would look at imports of raw mined copper, copper concentrates, copper alloy, scrap copper and derivative products made from the metal. The official declined to identify any specific derivatives, saying that would prejudge the investigation.

The official said the Department of Energy recognized copper as a critical material in the medium term due to increased demand for solar energy technologies and global electrification, noting that it was the second most widely used material in U.S. weapons platforms.

More capacity needed

The official said based on current demand for electric vehicles and power-hungry artificial intelligence applications, there will be a U.S. copper shortage in the future, and the United States cannot develop adequate copper smelting and refining capacity unless there is a reasonable certainty of long-lasting trade protection for the sector.

During Tuesday’s signing, Lutnick also said the Trump administration would hold countries accountable for imposing digital services taxes on U.S. technology firms including Google, Apple and Amazon. Trump on Friday ordered USTR to revive tariff investigations into these taxes.

“Both friend and foe have been treating American tech companies, partially, as if our companies are their piggy bank,” Lutnick said. “This will now end. It is my objective to level the playing field and end these attacks.”

(With inputs from Reuters)

President Donald Trump escalated his challenge to global trade norms by initiating an investigation into potential new tariffs on copper imports, on Tuesday. The move aims to boost U.S. production of the metal, which is essential for electric vehicles, military equipment, the power grid, and various consumer products.

In an effort to counter what his advisers view as China’s push to dominate the global copper market, Trump signed an order at the White House instructing Commerce Secretary Howard Lutnick to launch a national security investigation under Section 232 of the Trade Expansion Act of 1962. This is the same legislation he previously used to impose 25% tariffs on steel and aluminum during his first term.

A White House official, speaking anonymously to reporters, stated that the investigation would determine any potential tariff rate, noting that Trump favored tariffs over quotas.

Trump’s latest move continues his efforts to dismantle decades of business-backed free trade policies, which he criticized both as a candidate and during his presidency for weakening the U.S. industrial sector. This shift now targets long-standing U.S. allies such as Canada and Mexico, in addition to geopolitical rivals like China.

Since returning to the White House last month, he has issued a series of tariff directives. While a new 10% tariff on all Chinese imports is already in effect, 25% duties on goods from Canada and Mexico are set to begin next week. Additional tariffs on steel, aluminum, and automobiles are either imminent or being rapidly developed.

Trump’s aggressive trade policies have started to impact consumer confidence, which had initially risen after his November election victory over former President Joe Biden, fueled by his promises to reduce living costs. However, on Tuesday, the Conference Board reported the steepest decline in consumer confidence in three and a half years, as households brace for a potential rise in inflation.

Ahead of the copper announcement, stocks fell on Wall Street for a fourth straight day, a drop pinned on growing uncertainty about Trump policies on trade in particular.

But there were pockets of upside among perceived winners: Shares of the world’s largest copper producer, Phoenix-based Freeport-McMoran shot up 5% in after-hours trading. The company, which produced 1.26 billions of copper in the U.S. last year, did not immediately respond to a request for comment.

London-based Antofagasta declined to comment on Trump’s action. The company is trying to develop the $1.7 billion Twin Metals copper and nickel mine in Minnesota, but saw its mineral rights blocked under former president Biden’s administration over water pollution concerns.

Trump has vowed to ease regulations on businesses to boost U.S. economic growth.

Targeting China

White House trade adviser Peter Navarro said the investigation would be completed quickly, “in Trump time.”

Navarro said China was using state subsidies and excess capacity to undermine competition and gain control over global copper production, in much the same way it now dominates steel and aluminum production.

That said, the countries set to be most affected by any new U.S. copper tariffs would be Chile, Canada and Mexico, which were the top suppliers of refined copper, copper alloys and copper articles in 2024, according to U.S. Census Bureau data.

“Like our steel and aluminum industries, our great American copper industry has been decimated by global actors attacking our domestic production,” Lutnick said during the White House signing session, vowing to end unfair trade practices that have put Americans out of work.

“American industries depend on copper, and it should be made in America, no exemptions, no exceptions,” he said. “It’s time for copper to come home.”

A White House fact sheet said the investigation would assess the national security risks from growing U.S. dependence on imported copper “in all its forms,” citing data showing the U.S. depended on imports for 45% of its copper consumption last year, up sharply from the early 1990s.

The White House official said the investigation, which also includes the U.S. Trade Representative’s office, would look at imports of raw mined copper, copper concentrates, copper alloy, scrap copper and derivative products made from the metal. The official declined to identify any specific derivatives, saying that would prejudge the investigation.

The official said the Department of Energy recognized copper as a critical material in the medium term due to increased demand for solar energy technologies and global electrification, noting that it was the second most widely used material in U.S. weapons platforms.

More capacity needed

The official said based on current demand for electric vehicles and power-hungry artificial intelligence applications, there will be a U.S. copper shortage in the future, and the United States cannot develop adequate copper smelting and refining capacity unless there is a reasonable certainty of long-lasting trade protection for the sector.

During Tuesday’s signing, Lutnick also said the Trump administration would hold countries accountable for imposing digital services taxes on U.S. technology firms including Google, Apple and Amazon. Trump on Friday ordered USTR to revive tariff investigations into these taxes.

“Both friend and foe have been treating American tech companies, partially, as if our companies are their piggy bank,” Lutnick said. “This will now end. It is my objective to level the playing field and end these attacks.”

(With inputs from Reuters)