U.S. Launches Investigation into Copper Imports

Trade Update • March 4, 2025

n February 25, 2025, the U.S. announced an investigation into into the national security implications of copper imports, a move that could lead to tariffs, export controls, or other remedial measures. The investigation, however, is expected to take several months, and similar past inquiries have not always resulted in trade actions.

The Investigation/Order

On February 25, President Trump signed an executive order emphasizing the strategic importance of copper and its derivative products in defense, infrastructure, and emerging technologies. The order highlights concerns over the United States’ increasing dependence on foreign sources of copper, particularly from a limited number of supplier nations. Notably, China controls over 50 percent of global copper smelting, raising alarms about supply chain vulnerabilities.

The executive order outlines the rationale behind the investigation, stating that copper is vital to national security and economic strength. Despite significant copper reserves in the U.S., the country lacks adequate smelting and refining capacity. A single foreign producer’s dominance over global copper processing raises concerns about potential economic and geopolitical risks.

Section 232

The executive order directs the Department of Commerce (DOC) to initiate a Section 232 investigation into the impact of copper imports on national security. The probe will examine various factors, including:

• The impacts of copper imports, including raw mined copper, concentrates, refined copper, alloys, scrap, and derivative products.
• Current and projected copper demand and the capacity of domestic production to meet it.
• The role of foreign supply chains and major exporters in meeting U.S. demand.
• Risks of import concentration from a limited number of suppliers.
• Effects of foreign government subsidies, overcapacity, and predatory trade practices.
• Potential export restrictions by foreign nations.
• Feasibility of expanding domestic production to reduce import reliance.
• Impact of foreign competition on domestic industries.
• Economic effects of artificially low copper prices due to foreign intervention.
• Risks of supply chain disruptions and trade restrictions.
• Potential for increasing U.S. mining, smelting, and refining capacities.

Potential Outcomes and Policy Actions

The DOC must submit a report within 270 days detailing its findings and recommendations. Possible outcomes include:

• Tariffs or quotas on imported copper to protect domestic industries.
• Export controls to regulate the flow of copper products.
• Incentives to boost domestic copper production, including investment in infrastructure and recycling initiatives.
• Policy recommendations to enhance the resilience of the U.S. copper supply chain.

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