U.S. Copper Imports Subject to 50% Tariff – Effective Aug. 1

Trade Update • July 30, 2025

Key Points

• 50% tariff applies to semi-finished copper products and copper-intensive derivatives

• Effective August 1, 2025, under Section 232 national security authority

• Applies only to copper content in products; non-copper content remains separately dutiable

• Copper scrap, ores, cathodes, and anodes excluded

• New domestic supply mandates and export restrictions for key copper materials

• Product inclusion processwill expand coverage to more copper derivatives

• Tariff action follows findings that import levels threaten US national security and industrial resilience

• Announced by White House Fact Sheet (July 30) and Presidential Proclamation

I

n order to revive the domestic copper industry and curb national security vulnerabilities, President Donald J. Trump has issued a proclamation imposing a universal 50% tariff on a broad range of copper imports, effective August 1, 2025.

The new tariffs—announced under Section 232 of the Trade Expansion Act—target semi-finished copper products (such as pipes, wires, rods, and tubes) and copper-intensive derivative goods (including fittings, cables, connectors, and electrical components). The action follows a Commerce Department investigation that found excessive copper imports pose a direct threat to the nation’s economic and defense readiness.

“Copper is the backbone of our defense industrial base and critical infrastructure,” said President Trump in the official White House Fact Sheet. “This action ensures America’s manufacturers can compete and thrive.”

Tariff Scope

• The 50% tariff applies only to the copper content of eligible products.

• Non-copper components remain subject to other duties—such as reciprocal tariffs or those related to border enforcement or Chinese supply chains, per the July 30 Presidential Proclamation.

• Auto parts subject to auto 232 tariffs are excluded from copper 232 duties to prevent tariff stacking.

• The tariffs apply to imports entered or withdrawn for consumption starting 12:01 a.m. EDT on August 1.

Excluded

The Proclamation specifically exempts copper feedstocks and scrap to preserve supply for domestic smelters and refiners:

• Copper ores, concentrates, mattes, cathodes, and anodes

• Copper scrap, though subject to new domestic sales mandates and export licensing controls

Domestic Supply Measures

Under the Defense Production Act, the administration is also imposing requirements to prioritize domestic supply:

• 25% of U.S.-produced high-quality copper scrap must be sold within the U.S., with export licenses required for shipments abroad

• 25% of U.S.-produced copper inputs must be reserved for domestic buyers starting in 2027, rising to 30% in 2028 and 40% by 2029

These steps aim to restore refining capacity and ensure manufacturers can access the raw materials needed to grow domestic production.

Why Now?

The White House cited four national emergencies as the legal basis for the move:

1. Drug trafficking from Canada and Mexico, especially fentanyl and precursors.
2. Synthetic opioid supply chains from China and Hong Kong.
3. Systematic abuse of de minimis to evade tariffs, particularly through fraudulent shipping and mislabeling.
4. Large and persistent U.S. trade deficits driven in part by duty-free low-value imports.

The administration has now received confirmation from the Secretary of Commerce that U.S. systems are equipped to collect duties effectively on a global basis—even for high-volume, low-value shipments.

Compliance and Future Action

CBP will issue guidance requiring strict copper content declarations for covered imports. Failure to comply could result in severe penalties, including fines, criminal liability, and loss of import privileges.

The proclamation also:

• Authorizes a product inclusion process for new copper-based articles

• Tasks Commerce with monitoring the market and reporting back by June 30, 2026 on whether additional refined copper tariffs (15% in 2027, 30% in 2028) are warranted

• Confirms that no drawback is available for tariffs paid under this action

What’s Next?

CBP will publish further implementation/guidance and HTSUS details in the Federal Register and via CSMS Messages. Importers and manufacturers are urged to evaluate products for copper content exposure and prepare for major price impacts and supply chain adjustments.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.