President Donald Trump signed an executive order to examine the possibility of imposing tariffs on copper in an attempt to reshape global supply chains. Trump mentioned that this measure would have a "great impact" as he signed it in the Oval Office accompanied by Secretary of Commerce Howard Lutnick.
This action adds to the tariffs already imposed on steel and aluminum, aimed at addressing what is considered a national security issue related to copper production in the United States. Senior officials in the administration pointed out that overcapacity in global markets had affected domestic copper production, leaving critical sectors dependent on imports.
The investigation to impose tariffs on copper will be conducted under Section 232 of the Trade Expansion Act, granting the president the power to restrict trade for national security reasons. Peter Navarro, Trump's trade advisor, mentioned that China has used industrial overcapacity as a strategy to dominate global markets.
The United States is a major consumer of copper, with demand relying 36% on net imports. Despite being a relevant producer, it still imports a large portion of this metal from countries such as Chile, Canada, and Mexico. Copper prices have risen this year in New York amid speculation about potential tariffs that could impact American consumers.
Trump's sudden announcement of tariffs on copper has generated uncertainty in global markets for this metal, leading Comex futures to trade at a significant premium compared to contracts on the London Metal Exchange. Questions remain about how this tariff will influence the flow of copper into the U.S. market.
