The White House announced that President Trump signed a proclamation on Wednesday (July 30) to impose a 50% tariff on various copper products starting from August 1, citing national security reasons.
According to the statement released by the White House, the United States will impose a uniform 50% tariff on imported semi-finished copper products (such as copper pipes, wires, bars, sheets, etc.) and copper-intensive derivative products (such as fittings, cables, connectors, electronic components, etc.).
The specific provisions are as follows:
– The copper tariff applies to the copper content in the products; non-copper content in the products still needs to pay equivalent tariffs or other applicable tariffs. These tariffs will not be cumulative.
– The copper tariff will not be cumulative with the auto tariff. If a product is subject to the auto tariff, only the auto tariff will be imposed, not both the copper tariff and auto tariff simultaneously.
– Copper raw materials (such as copper ore, concentrates, blister copper, cathodes, and anodes) as well as copper scrap are not constrained by the 232 tariff or equivalent tariffs.
The White House stated that the presidential proclamation instructed the Secretary of Commerce to establish a product “exclusion” process to include copper derivative products under these tariffs.
President Trump also authorized the Secretary of Commerce to take actions to support the domestic copper industry under the Defense Production Act.
“By taking these actions, President Trump is creating a fair competitive environment for American copper companies to support a strong domestic copper industry,” the White House said.
The proclamation was issued following the completion of the 232 investigation by the Department of Commerce. In February of this year, Trump signed an executive order initiating an investigation under Section 232 of the Trade Expansion Act to evaluate whether the import of copper and its products poses a threat to U.S. national security. Secretary of Commerce Howard Lutnick stated in a press release at that time: “Like our steel and aluminum industries, America’s great copper industry has been attacked by global competitors, leading to severe damage to domestic production.”
Section 232 grants the U.S. President the authority to impose higher tariffs for national security reasons.
The Commerce Department’s 232 investigation found that copper is crucial to the manufacturing base on which U.S. national and economic security relies. Copper is a critical material for a range of defense systems, including aircraft, ground vehicles, ships, submarines, missiles, and ammunition. It is the second most used material by the U.S. Department of Defense and plays a core role in America’s broader industrial base.
The investigation also revealed that the predatory behavior of foreign competitors and excessive environmental regulations have weakened the U.S. copper industry as well as investments in domestic smelting, refining, and manufacturing facilities. Currently, the U.S. has a significant and unsustainable trade deficit with many foreign copper products.