Forthcoming Tariffs on Copper

Action: The President announced new tariffs on copper at a rate of 50% starting August 1, 2025, following an investigation under Section 232 of the Trade Expansion Act on the impact of copper imports on US national security. Copper remains an essential input for a wide range of industries, with forthcoming tariffs likely to have an impact not only on those industries but on commodity markets and other sectors that use products manufactured with copper.

Trusted Insights for What's Ahead^®

• Section 232 tariffs rest on national-security investigations and findings. While tariffs under this authority have been challenged, because they are based on clear statutory authority and require a national security justification, they are likely less vulnerable to court challenges.
• Although the Commerce Department has until November to conclude the investigation and prepare a report for the President’s decision, the latest comments suggest at least a preliminary finding that copper imports (and thus US reliance on foreign copper) threaten national security. Earlier, the Administration had officially designated copper as a critical mineral; a similar Section 232 investigation from April concerns a broader set of critical minerals.
• The copper investigation drew public comments from a range of stakeholders. Industry organizations reliant on copper warned against wide-reaching tariffs, and instead voiced support for boosting domestic production capacity through government incentives.
• While domestic copper production has grown, the US continues to import nearly half of its copper supply. Chile, Canada, and Peru are the largest sources of imported copper. China is a leading refiner and exporter globally.
• Despite large domestic and expanding global reserves, rising demand for copper suggests that the US may not be able to replace the volume it currently imports in the short term. One important question, therefore, as the President makes a final determination, is whether there will be any exemptions from the tariffs, either based on country of origin (for instance, with Chile) or on other criteria (such as a formal regime under which importers apply for exemptions). Meanwhile, the Administration continues with its efforts to expedite permitting for projects related to expanding all types of US critical mineral production.