Trump Imposes 50% Tariffs on Semi-Finished Copper Imports to Address National Security Concerns

US President Donald Trump has signed a proclamation imposing universal 50% tariffs on semi-finished copper imports, effective August 1. The tariffs will apply to imports of copper pipes, wires, rods, sheets, and tubes, as well as copper-intensive derivative products. Copper input materials, such as ores, concentrates, and scrap, are exempt from the tariffs. Publicly traded companies in the copper mining and production space include Freeport McMoRan, Southern Copper, Rio Tinto, BHP, and Glencore.

US President Donald J. Trump has signed a proclamation imposing universal 50% tariffs on semi-finished copper imports, effective August 1, 2025. The tariffs will apply to imports of copper pipes, wires, rods, sheets, and tubes, as well as copper-intensive derivative products. Copper input materials, such as ores, concentrates, and scrap, are exempt from the tariffs.

The proclamation follows a Section 232 investigation under the Trade Expansion Act of 1962, as amended, which found that copper is essential to the manufacturing foundation of U.S. national and economic security. The investigation also noted that foreign competitors' predatory practices and excessive environmental regulations have undercut the American copper industry and domestic investment in smelting, refining, and fabrication facilities [1].

The tariffs are part of a broader effort by the Trump Administration to address trade imbalances and support domestic industries. The proclamation also includes measures to require 25% of high-quality copper scrap and 25% of copper input materials produced in the United States to be sold domestically, starting at 25% in 2027 and increasing to 40% in 2029. These measures aim to boost U.S. refining capacity and ensure low-cost inputs for domestic refiners [1].

Publicly traded companies in the copper mining and production space include Freeport McMoRan, Southern Copper, Rio Tinto, BHP, and Glencore. The impact of these tariffs on these companies and the broader copper industry remains to be seen, but the uniform application across all countries suggests that the financial burden will be distributed evenly. However, the tariffs may lead to increased costs for U.S. consumers and businesses that rely on copper products.

The tariffs are part of a series of trade actions taken by the Trump Administration to address trade imbalances and support domestic industries. Previous actions include imposing tariffs on steel and aluminum, implementing a 10% additional tariff on imports from China, and imposing reciprocal tariffs to address nonreciprocal trade relationships [1].

References:
[1] https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-takes-action-to-address-the-threat-to-national-security-from-imports-of-copper/