Trump Imposes 50% Tariff on Copper Imports, Industry Braces for Impact

President Donald Trump has announced a new 50% tariff on copper, effective from August 1, which will now include refined metal. This decision has taken the industry by surprise and is expected to add significant pressure on U.S. businesses that rely heavily on imported copper. Refined copper, which is the largest import category, is crucial for various sectors including energy, construction, electronics, and auto manufacturing. The tariff will also affect semi-finished copper products such as rods, tubes, and other intermediary forms essential for turning raw copper into finished goods. U.S. producers do not have enough capacity to meet the current demand, which is why this move is already causing concern among manufacturers.

Just hours after Trump’s announcement, his Council of Economic Advisers met with metals industry executives. They urged the president not to include export controls on copper scrap, as the U.S. produces more scrap than it can use, and the excess is shipped overseas. Industry leaders argued that blocking these exports wouldn’t help the domestic shortfall; it would just create a surplus no one can process. Executives from major companies were among those who asked Trump to instead restrict the exports of ore and scrap rather than taxing imports. Their position is that focusing on outbound shipments would be more effective in protecting domestic supply.

The U.S. imported 908,000 metric tons of refined copper last year, defined as copper with more than 99.993% purity. This refined copper is what fabricators rely on to make alloys, rods, and wires. Additionally, the U.S. imported 800,000 tons of semi-fabricated copper and alloy products in the same year. These imports filled the gap that domestic production couldn’t cover. A March 31 filing from the Copper Development Association to the Commerce Department explained that copper semis are critical to the military-industrial supply chain. The group, speaking for 90% of domestic copper semi producers, argued that the U.S. is structurally dependent on imports.

Krisztina Kalman, co-founder of consultancy MM Markets, believes the 50% tariff will eventually hit semi-products too. She warned that U.S. producers don’t have the capacity to replace the lost imports. “The local fabricators will not be able to produce 800,000 tons more semi-products with current capacity, and it could take up to seven years to install new capacity.”

Chile, the world’s top copper producer, has not yet received formal notice of the new tariffs, but Mining Minister Aurora Williams confirmed that her government is pushing for an exemption. She stressed that Chilean refined copper is shipped with full traceability. Canada, the second-largest supplier of copper to the U.S., responded more aggressively. Industry Minister Melanie Joly called the tariffs “illegal” and promised to “fight” them. Speaking at an event, she said the measures were “a direct attack against its workers.”

Meanwhile, the copper market is already reacting. Analysts at Macquarie said that once tariffs kick in, U.S. consumers will begin using copper from stockpiles that were built up earlier this year. They estimate those inventories will last about nine months, giving some temporary breathing room before the real supply squeeze hits. Last year, U.S. production of refined copper from ore totaled 850,000 tons, while imports added another 810,000 tons. Recycling and inventory drawdowns made up the remaining 5% of the country’s copper demand. With only two active copper smelters in the U.S., about half of the semi-processed ore produced here is sent abroad.

Rebuilding domestic capacity isn’t going to happen overnight. If refined copper is taxed but semi-fabricated products are not, analysts warn that those semi-products could flood the U.S. market instead. Without broader incentives and tariffs on semi-finished goods, import reliance will likely persist and hurt copper consumers.