Trump Orders Probe into Copper Imports: Tariffs, Export Controls, and More Possible Remedies

President Trump has ordered a Section 232 investigation into the national security impact of copper imports, which could lead to tariffs, export controls, or other actions. The executive order highlights concerns about U.S. dependence on foreign copper, particularly from a few key suppliers, with China controlling over 50% of global smelting. The investigation will focus on factors like domestic demand, foreign supply risks, and the potential for export restrictions. The Department of Commerce (DOC) will submit a report within 270 days, providing recommendations on how to strengthen the U.S. copper supply chain, including potential tariffs and policy changes.

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• Copper Prices Soar as Trump Orders Probe into Metal Imports and Potential Tariffs

Trump Orders Probe into Copper Imports: Tariffs, Export Controls, and More Possible Remedies

President Trump has launched a Section 232 investigation into the national security implications of copper imports, which could lead to new tariffs, export controls, or other measures. However, the investigation’s timeline suggests a decision may not be reached for several months. Previous similar probes under the first Trump administration did not result in trade actions.

A February 25 executive order highlights copper’s critical role in defense, infrastructure, and emerging technologies, noting concerns over the U.S.’s growing dependence on foreign copper, particularly from a few key suppliers. The order also points to China’s dominance in global copper smelting, controlling over 50% of it.

The Department of Commerce (DOC) has been tasked with examining the impact of copper imports in all forms, including raw, refined, and scrap copper, as well as alloys and derivatives. Key factors in the probe include domestic demand and production capacity, the role of foreign suppliers, import concentration risks, government subsidies, and potential foreign export restrictions. The DOC is expected to submit a report within 270 days, offering findings, recommendations on remedial actions like tariffs or export controls, and strategies to enhance the U.S. copper supply chain through investments, permitting reforms, and recycling initiatives.

Copper Prices Soar as Trump Orders Probe into Metal Imports and Potential Tariffs

Copper futures surged following President Donald Trump’s order for the US Commerce Department to investigate potential tariffs on copper imports. This move is part of a broader strategy to impose sector-specific levies to protect US producers and reshape global supply chains. Copper futures in New York rose by as much as 4.9%, and shares of US copper miners, such as Freeport-McMoRan, saw significant gains. The price difference between copper futures on the New York Comex and the London Metal Exchange spiked to over $1,000 per ton.

The investigation will be conducted under Section 232 of the Trade Expansion Act, allowing the president to impose trade restrictions for national security reasons. Trump highlighted the decline of the US copper industry, blaming global competition. The probe gives the Commerce Department 270 days to report back. Analysts suggest that if a 25% tariff is imposed, the price spread between US and global copper prices could widen further.

Meanwhile, copper deliveries to the US are expected to increase, but uncertainties around the timing and scale of tariffs, as well as other global factors, are likely to keep prices volatile. Additionally, copper mining in Chile faces risks due to ongoing power shortages, which have affected operations across the country. Despite this, major mining companies, including Codelco, Anglo American, and Antofagasta, have started to resume processing at their facilities following the restoration of power. However, the power cuts, the worst in decades, have created further challenges for the mining sector, adding uncertainty to global copper supplies.