President Donald Trump has directed the Commerce Department to investigate the national security risks of relying on imported copper, a move that could lead to tariffs or other protective measures.
The initiative, led by Commerce Secretary Howard Lutnick, aims to boost domestic copper production and reduce dependence on foreign sources, particularly as copper plays a crucial role in military equipment, electric vehicles, and advanced technology.
Copper is essential to the US economy and national defense, yet the country produces only about half of the refined copper it consumes. The rest is imported, primarily from Chile, Canada, and Peru. While China dominates global copper refining, it sources much of its raw materials from Latin America and has been expanding its control over global mining operations.
Trump’s decision follows concerns that overcapacity and foreign market manipulation—particularly from China—have weakened the US copper industry. Senior administration officials argue that restoring domestic production is critical to ensuring a stable supply for key industries, including defense, infrastructure, and emerging technologies.
The investigation falls under Section 232 of the Trade Expansion Act, the same legal authority Trump used to impose tariffs on steel and aluminum. If the Commerce Department finds that copper imports threaten national security, the administration could impose tariffs or quotas to encourage domestic production.
The announcement has already influenced copper markets, with New York’s Comex futures rising 13% this year amid speculation that trade barriers could drive up prices. While some businesses fear higher costs, Trump and his advisors argue that protective measures will create jobs and strengthen America’s industrial base.
Trump’s focus on copper aligns with his broader trade agenda. His administration has already imposed tariffs on steel, aluminum, pharmaceuticals, and other sectors. Additional tariffs on automobiles, semiconductors, and lumber are also being considered. The president has emphasized the need for reciprocal trade policies, ensuring that US industries are not disadvantaged by foreign market practices.
With input from the Washington Post, Reuters, Bloomberg.
