Copper is essential in semiconductors and other electronics, as well as many other industries, especially automobiles. Seeing the vital purpose of the metal, President Trump announced late Wednesday a steep 50% tariff on copper, effective Aug. 1.

The move is intended, primarily, to motivate more domestic production. In a Truth Social post, Trump said it was based on a “robust” national security assessment first initiated with a Section 232 investigation in February. Copper is the second most used material by the Department of Defense, he said. In semiconductors, silicon is usually the most essential element, followed by copper and silver, with both metals used to create circuits to allow the flow of electricity.

Only half of what the US needs in copper is mined and smelted domestically. Imports of refined copper reached 810,000 metric tons in 2024, according to government statistics. More than two-thirds of the total US total production comes from Arizona.

“It could take years for us to reinvigorate copper mining in the US and at what cost to the environment?” asked Jack Gold, principal analyst at J. Gold Associates. “What the tariff will do is dramatically increase the cost for many items that rely on copper while not really helping increase domestic production in the short term… Ultimately, it’s the consumer who pays for tariffs.”

Tariffs penalize, and Gold suggested the US instead offer incentives to domestic copper producers, similar to the way the CHIPS Act incentivized chip production. The CHIPS Act was enacted under the Biden administration but the law has been attacked by the Trump administration, which is re-examining contracts reached by the prior administration for distributions of grants with total value of $39 billion under the CHIPS Act.

"US copper is already more expensive and this tariff will drive up production costs and, thus, prices of goods will increase," Rosemary Coates, founder of Blue Silk Consulting and chair of the non-partisan Reshoring Institute, told Fierce. "Yes, over time, if the tariffs remain they may drive new production in the US but the bigger copper reserves are in northern Mexico and probably more of the development will occur there."

She added that someday tariffs could be reduced and businesses will realize it is cheaper to source products and raw materials from overseas. She predicted the Trump tariff on copper will be temporary. "It doesn't make economic sense and eventually the markets will rationalize."

The primary foreign provider of copper to the US in 2024 was Chile, providing 51% of of $17.4 billion total. Canada provided 31% and Mexico 7%. The US also imports copper from Peru and Congo.

Copper and pharmaceuticals are currently exempt from tariffs in the US, but aluminum and steel are subject to 50% tariffs. Trump said the copper tariff will take effect Aug. 1.

Clyde Russell, a columnist for Reuters, tracked the current status of copper mining and smelting in the US. Copper miners Freeport McMoRan and Rio Tinto could lift output for the short-term while smelter Grupo Mexico-owned Asarco in Hayden, Arizona, has been inactive for more than four years. New mines in planning include Rio’s Resolution Copper in Arizona, which was delayed by a legal challenge by the indigenous Apache tribe. A court ruling appears to have cleared the way for development, but it will take years before initial production.

US copper prices rose 13% on Tuesday when the 50% tariff was signaled by the White House, but then declined by 3.6% on Wednesday, reaching $5.44 a pound. Importers have been buying up copper since Trump first took office when tariffs seemed apparent.

On Tuesday and Wednesday, Trump began posting a number of letters with tariff rates for a number of countries, affecting a broad range of goods imported to the US. One of the highest was imposed on Brazil at 50% with Trump condemning the trial of former President Jair Balsonaro, calling it an “international disgrace.”

By: DocMemory
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