The U.S. will install a 50% tariff on copper imports starting Aug. 1, according to an executive order signed by President Donald Trump on Wednesday.
The duty will apply to all imports of semi-finished copper products and intensive copper derivative products and stack upon any other applicable tariffs, per the order. However, cars and auto parts that would be subject to the tariff on copper will instead be covered by the Trump administration’s previous 25% automotive duties.
The order also calls for Commerce Secretary Howard Lutnick to establish a process to consider additional derivative copper goods within the next 90 days. Additionally, the U.S. plans to work with the United Kingdom to negotiate an approach to the trade of copper, per a framework agreement between the two countries.
Trump made the decision to install the copper levies after receiving the results of a Section 232 investigation from the Commerce Secretary on June 30. Similar Section 232 investigations have served as precursors to U.S. tariffs, such as the 50% duties currently being levied on steel imports. The report stated that the U.S. is “overly reliant” on copper imports, posing a national security risk and necessitating action such as tariffs, according to the order.
As part of the report, the Commerce Secretary recommended the implementation of additional tariffs to be phased in through 2028, including a 15% tariff on refined copper starting in 2027 and 30% starting in 2028. The order also asks the Commerce Secretary to deliver a report on the state of the domestic copper industry that can help assess whether the additional tariffs on refined copper are needed.
The Commerce Secretary also recommended the implementation of a 25% domestic sales requirement for copper inputs and scrap, as well as export controls. The order charges the Commerce Secretary with taking “appropriate action” to install the domestic sales requirement, although it remains unclear when such a provision would be enacted.
Trump first announced plans to levy a 50% tariff on copper imports in a Truth Social post earlier this month. The president had teased the new tariffs at a cabinet meeting days earlier while also suggesting tariffs on pharmaceuticals would be coming “very soon.”
U.S. copper import sources in 2024
Chile and Canada were the top exporters of copper to the U.S. last year, supplying more than $10 billion combined, per data from the U.S. International Trade Commission compiled by Supply Chain Dive.
