Trump Launches Probe That Could Lead to Copper Tariffs

WASHINGTON—President Donald Trump on Feb. 25 signed an executive order to launch an investigation into whether imports of copper and its derivatives pose a threat to U.S. national security.

“Like our steel and aluminum industries, our great American copper industry has been decimated by global actors attacking our domestic production,” Commerce Secretary Howard Lutnick said in a statement.

Lutnick noted that to restore the U.S. copper industry, he would look into the possibility of imposing tariffs.

The tariff rates, however, remain uncertain and will depend on the results of the investigation.

The executive order will launch the Section 232 investigation that will then put options on the president’s desk, according to the White House.

“Tariffs can help build back our American copper industry, if necessary, and strengthen our national defense,“ Lutnick said. ”American industries depend on copper, and it should be made in America.

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“It’s time for copper to come home.”

Copper is considered the lifeblood of everyday electronics. Beyond consumer goods, it plays a critical role in high-precision weapons and other defense technologies, making it vital for national security. It is also key in the production of electric vehicles and alternative energy solutions.

“Copper is a critical material essential to the national security, economic strength, and industrial resilience of the United States,” the president’s executive order read. “Copper, scrap copper, and copper’s derivative products play a vital role in defense applications, infrastructure, and emerging technologies.”

U.S. refining and smelting capacity are declining despite having plenty of domestic capabilities, and the Trump administration needs to assess the risks associated with this trend, a senior White House official told reporters during a call ahead of the executive order signing.

“The United States produces a quantity that is only 28 percent of what Chile produces and 14 percent of what China produces,” the official said.

“China has long used industrial overcapacity and dumping as an economic weapon to dominate global markets,” Trump’s adviser, Peter Navarro, told reporters during the call.

Navarro noted that China undermines competitors by heavily subsidizing key industries, flooding global markets with cheap goods, and then consolidating control after driving rivals out of business. This strategy has allowed China to expand its economic influence in critical sectors such as steel, aluminum, solar panels, and electric vehicles.

“It is now using that same model to gain control of the world’s copper markets,” Navarro said.

According to the White House, import dependency has increased significantly in recent years despite the United States having abundant reserves of copper. As of 2024, the country held nearly 45 million metric tons of known copper reserves, ranking fifth globally, behind Chile, Peru, Australia, and Russia, and ahead of China, which has only 27 million metric tons.

“Our copper potential is untapped,” Navarro said.

By focusing on production at three major sites, U.S. primary copper production could increase by 70 percent, reducing reliance on copper imports to just 30 percent by 2035, Navarro said.

He said Lutnick will move what he calls “in Trump time”—moving as quickly as possible—to deliver the results of his investigation to the president for potential action.

According to the order, the Secretary of Commerce is to submit a report to the president within 270 days of the date of the order. He will identify vulnerabilities in the copper supply chain and provide recommendations to the president to enhance the resilience of domestic copper sector.

“America’s smelting and refining capacity lags behind global competitors like China, which controls over 50 percent of global smelting,” the White House said in a fact sheet.

“The United States isn’t even in the top five nations in copper smelting capacity.”