Tariffs, Export Controls Among Potential Remedies in Section 232 Probe of Copper

President Trump has ordered an investigation of the national security impacts of copper imports that could ultimately result in new tariffs, export controls, or other remedial measures. However, the timeline of the probe means a decision may not come for several months, and press sources note that similar investigations of other goods during the first Trump administration ultimately yielded no trade actions.

A Feb. 25 executive order states that copper and copper products “play a vital role in defense applications, infrastructure, and emerging technologies” but that the U.S. “faces significant vulnerabilities in the copper supply chain,” including “increasing dependence on foreign sources of copper, particularly from a concentrated number of supplier nations,” and the fact that China “controls over 50 percent of global [copper] smelting.”

The EO therefore directs the Department of Commerce to initiate a Section 232 investigation to determine the effects on national security of imports of copper in all forms, including raw mined copper, copper concentrates, refined copper, copper alloys, scrap copper, and derivative products. This investigation will assess factors such as (1) current and projected demand and the extent to which it can be met domestically, (2) the role of foreign supply chains, particularly from major exporters, in meeting demand, (3) the risks of imports being concentrated from a small number of suppliers, (4) the impact of foreign government subsidies, overcapacity, and predatory trade practices, (5) the potential for export restrictions by foreign nations, and (7) the feasibility of increasing domestic capacity to reduce import reliance.

The DOC will be required to submit within 270 days a report that includes the findings of the investigation; recommendations on actions to mitigate any identified threats, including potential tariffs, export controls, or incentives to increase domestic production; and policy options for strengthening the U.S. copper supply chain through strategic investments, permitting reforms, and enhanced recycling initiatives.

Click here to keep up with the latest on this investigation. Click here for more information on ST&R’s three-pronged strategy to avoid, mitigate, and recover Section 232 and other tariffs.