US to probe need for tariffs on copper imports

WASHINGTON - US President Donald Trump ordered an investigation on Feb 25 into possible levies on US copper imports, with officials citing a need to rebuild domestic production and safeguard national security – the latest salvo of the President’s tariff threats.

The world’s biggest economy has been increasingly reliant on copper imports to meet domestic consumption needs.

The imposition of tariffs or other trade barriers, however, could hit some of the US’ biggest suppliers, including Chile and Canada.

To build back the US copper industry, Mr Trump is calling on his Commerce Secretary and trade envoy to study copper imports and end unfair trade, adding that “it’s time for copper to come home.”

Besides the use of copper in military hardware like aircraft, demand for the metal is linked to growth in artificial intelligence and data centers.

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

“To build back our copper industry, I will investigate the imposition of possible tariffs,” Mr Lutnick added.

He said there would be no exemptions or exceptions if tariffs were imposed, but US officials did not commit to a deadline.

The investigation will take place under Section 232 of the Trade Expansion Act, the same tool used for steep tariff hikes on steel and aluminum imports recently.

Such probes focus on the harm that certain imports – in this case copper and derivatives – could have on US national security.

These investigations can take months and do not necessarily result in action, though US officials said Mr Lutnick would move quickly, “in Trump time”.

With copper, considering both mining and refinery production, the US produces just a fraction of what countries like Chile and China do, a White House official said.

While the US sits on significant copper reserves, it lacks smelting and refining capacity, the official added.

On Feb 25, Mr Peter Navarro, Trump’s senior counsellor for trade and manufacturing, also accused China of using a model of industrial overcapacity and dumping as an economic weapon “to gain control of the world’s copper markets”.

With overcapacity, US officials said the country is seeing its import dependency rise dramatically.

“Our copper potential is untapped,” Mr Navarro told reporters.

Since taking office, Mr Trump has announced and paused sharp tariff hikes on major trading partners Canada and Mexico, and unveiled levies on steel and aluminium imports to take effect in early March. AFP