Global Copper markets received a jolt after the US President Donald Trump signed an Executive Order launching an investigation into how copper imports threaten America’s national security and economic stability. The Order directs the Secretary of Commerce to initiate a Section 232 investigation under the Trade Expansion Act of 1962. This investigation will assess the national security risks arising from the United States’ increasing dependence on imported copper, in all its forms, and the potential need for trade remedies to safeguard domestic industry. This indicates that Commerce Department is set to examine possible imports tariffs on all forms of the metal.
The investigation will culminate in a report identifying vulnerabilities in the copper supply chain and providing recommendations to enhance the resilience of America’s domestic copper industry. President Trump recognizes that an overreliance on foreign copper, in all its forms, could jeopardize U.S. defense capabilities, infrastructure development, and technological innovation. White House has noted that Copper is an essential material for national security, economic strength, and industrial resilience. Copper plays a vital role in defense applications, infrastructure, and emerging technologies like clean energy, electric vehicles, and advanced electronics. It is also the Defense Department’s second-most utilized material.
Despite possessing ample copper reserves, America’s smelting and refining capacity lags behind global competitors like China, which controls over 50% of global smelting. The United States isn’t even in the top five nations in copper smelting capacity. America’s reliance on copper imports has surged from virtually 0% in 1991 to 45% of consumption in 2024, heightening risks to supply chain security. Foreign overcapacity in smelting and refining, coupled with potential export restrictions from other nations, threaten to disrupt copper availability for US defense and industry needs.