U.S. President Donald Trump has announced a 50% tariff on copper imports, effective August 1, as part of his strategy to boost domestic production and strengthen national security. The decision, which comes amid ongoing trade tensions, is the latest in a series of targeted tariffs aimed at key sectors such as steel and aluminum. Trump’s administration argues that the move is necessary to secure critical supply chains and counter perceived damage to the U.S. copper industry under the previous administration.
According to the administration, the 50% levy is the result of a national security review that concluded tariffs were essential to protect American interests. The president has accused the Biden administration of ‘decimating’ the copper industry, which he now aims to rebuild and make ‘dominant’ again. The previous administration had canceled or suspended several significant mining projects due to environmental and Indigenous land concerns.
The countries most affected by the new tariff are expected to be Chile, Canada, and Mexico, the U.S.’s top suppliers of copper in 2024. Despite the country’s seventh-largest copper reserves globally, the U.S. lacks sufficient refining infrastructure and relies on imports for nearly half of its refined copper needs. A 2024 S&P Global report highlighted that developing a new copper mine in the U.S. takes an average of 29 years, significantly longer than in other countries.
Critics warn that the 50% tariff could backfire, potentially driving up costs for U.S. manufacturers without significantly boosting domestic output in the short term. Reuters commodities columnist Clyde Russell notes that the U.S. copper market faces challenges in quickly increasing mining and processing capacity. The move is seen as part of Trump’s broader trade campaign, which includes other targeted tariffs aimed at reshaping global trade dynamics and promoting American manufacturing.