Key Takeaways
- On February 25, President Trump ordered the Department of Commerce to conduct an investigation under Section 232 of the Trade Expansion Act of 1962 on the impact of copper imports on U.S. national and economic security.
- Merchandise subject to investigation includes raw mined copper, copper concentrates, refined copper, copper alloys, scrap copper, and derivative products.
- This investigation is expected to be completed by November 2025, with recommendations on possible mitigation actions such as tariffs, export controls and domestic production incentives.
On Feb. 25, President Donald Trump signed an executive order directing the secretary of commerce to investigate the effects of copper imports on national security under Section 232 of the Trade Expansion Act of 1962. The investigation covers raw mined copper, copper concentrates, refined copper, copper alloys, scrap copper and derivative products. The president ordered this investigation because of the critical role of copper in defense applications, infrastructure and merging technologies. The order identifies a single foreign producer’s domination in global copper smelting and refining as a threat to U.S. national and economic security.
The executive order outlines the factors to be assessed in the investigation as follows:
I. The current and projected U.S. demand for copper in key sectors
II. The extent to which domestic production, smelting, refining and recycling can meet demand
III. The role of foreign supply chains in meeting U.S. demand
IV. The concentration of U.S. copper imports from a small number of suppliers and the associated risks
V. The impact of foreign government subsidies, overcapacity and predatory trade practices on U.S. industry competitiveness
VI. The economic impact of artificially suppressed copper prices due to dumping and state-sponsored overproduction
VII. The potential for export restrictions by foreign nations, including the ability of foreign nations to weaponize their control over refined copper supplies
VIII. The feasibility of increasing domestic copper mining, smelting and refining capacity to reduce import reliance
IX. The impact of current trade policies on domestic copper production and whether additional measures, including tariffs or quotas, are necessary to protect national security
The investigation is to be completed within 270 days or by Nov. 22. At that time, a report will be submitted to the president that includes (i) findings on whether the United States’ dependence on copper imports threatens national security; (ii) recommendations on actions to mitigate such threats, including potential tariffs, export controls or incentives to increase domestic production; and (iii) policy recommendations for strengthening the United States’ copper supply chain.
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