Trump Imposes 50% Tariff on Copper Imports, Citing National Security

On July 9, 2025, President Donald Trump announced a 50% tariff on copper imports, set to take effect on August 1. The decision follows a national security assessment highlighting copper's critical role in sectors such as semiconductors, defense, and renewable energy.

"I am announcing a 50% TARIFF on Copper, effective August 1, 2025, after receiving a robust NATIONAL SECURITY ASSESSMENT," Trump stated on Truth Social. He emphasized copper's necessity for various applications, including semiconductors, aircraft, ships, ammunition, data centers, lithium-ion batteries, radar systems, missile defense systems, and hypersonic weapons.

The United States imports nearly half of its copper, primarily from countries like Chile, Canada, and Mexico. In 2024, the U.S. consumed approximately 1.62 million metric tons of refined copper, with net imports accounting for about 44% of demand. Chile supplied 70% of these imports, followed by Canada (17%) and Peru (7%).

Following the announcement, copper prices experienced significant volatility. COMEX copper futures for September delivery surged over 12%, reaching $5.69 per pound, up from $5.01 per pound. This spike led to a record-high spread between COMEX and London Metal Exchange prices, with U.S. consumers potentially paying around $15,000 per metric ton for copper, compared to approximately $10,000 elsewhere.

Industry experts have expressed concerns that the tariff could increase costs across critical industries, from electronics and automobiles to infrastructure and defense. Billionaire mining entrepreneur Robert Friedland endorsed the tariff, calling it a strategically intelligent move to reduce foreign dependence and catalyze domestic production. Friedland's company, Ivanhoe Electric, plans to develop the Santa Cruz copper mine in Arizona, aligning with these national priorities.

The tariff is implemented under Section 232 of the Trade Expansion Act of 1962, which allows the president to adjust imports if they threaten national security. This approach has been a central component of President Trump's trade strategy, aiming to bolster domestic industries by reducing reliance on foreign imports.

However, the administration's use of emergency economic powers to impose tariffs has faced legal challenges. In May 2025, the U.S. Court of International Trade ruled in V.O.S. Selections, Inc. v. Trump that certain tariffs exceeded the authority granted under the International Emergency Economic Powers Act (IEEPA), highlighting the constitutional limits on executive action in trade policy.

In response to concerns over executive overreach in trade decisions, the Trade Review Act of 2025 was introduced in Congress. This bipartisan bill seeks to reassert Congressional authority over trade policy by requiring the president to notify Congress of any new tariffs, provide economic justifications, and obtain Congressional approval for those tariffs to remain in effect beyond 60 days.

The tariff announcement has implications for major copper-exporting countries. Chile, the largest supplier of copper to the U.S., along with Canada and Peru, may face economic impacts due to reduced export volumes. Additionally, President Trump has threatened similar tariffs on other sectors, including pharmaceuticals, indicating a broader strategy to address trade imbalances and national security concerns.

The 50% tariff on copper imports marks a significant shift in U.S. trade policy, reflecting the administration's focus on national security and domestic industry revitalization. While intended to reduce foreign dependence and stimulate domestic production, the move has sparked concerns about rising costs across multiple industries and potential legal challenges. As the August 1 implementation date approaches, stakeholders will be closely monitoring the economic and political ramifications of this decision.