Section 232 Investigation on Copper, Copper Alloys, Scrap and Copper Derivatives Begins
President Donald Trump directed the Commerce Department to launch a Section 232 investigation on copper and copper products, which will cover the effect of imports of copper, copper concentrates, refined copper, copper alloys, scrap copper and copper derivative products on national security -- specifically, how they affect domestic copper mining, smelting and refining. The investigation is not limited to those categories; as the order says, it should look at "imports of copper in all forms."
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While the statute requires that the report be completed within 270 days, along with recommendations on whether imports should be restricted, Peter Navarro, White House senior counselor for trade, in a phone call with reporters ahead of the executive order Feb. 25, said Commerce Secretary Howard Lutnick would act as quickly as possible "and get the results of his investigation to the president's desk for possible action."
The Section 232 investigation process allows for public comment, but does not require it.
Although Trump directed the Commerce Department to undertake seven Section 232 investigations in his first term, only those on steel and aluminum resulted in tariffs. Reports on cars and auto parts, uranium and titanium sponge concluded that imports of those goods were threats to national security, but there were no tariffs or quotas imposed. Those reports were not published during his term, nor were the reports on vanadium or electric transformers and their cores -- and in those two instances, no determination was disclosed during the Trump administration.
A White House official, speaking on background, said there was no tariff level in mind, though he noted that the president prefers tariffs to quotas, because tariffs collect revenue. "We never prejudge the outcome ... talking about any levels of tariffs would be premature when the result may not be anything like that at all." However, the official noted that mining and smelting in the U.S. are falling. He also said if there was a decision to protect copper mining or smelting, those tariffs would need to be in place for many years. "This stuff is for the long haul," he said. "You can't develop smelting and refining capacity unless there's some reasonable amount of certainty that there will be long-lasting protection over time for these industries."
"China has long used industrial overcapacity and dumping as an economic weapon to dominate global markets, systematically undercut competitors, and drive rival industries out of business," Navarro said.
The Commerce Department is to study how much domestic recycling, refining, smelting and mining can meet demand, which countries are major exporters of these goods to the U.S., how many suppliers there are, "the impact of foreign government subsidies, overcapacity, and predatory trade practices on United States industry competitiveness" and the potential of "foreign nations to weaponize their control over refined copper supplies."
It says the study should evaluate "the feasibility of increasing domestic copper mining, smelting, and refining capacity to reduce import reliance; and the impact of current trade policies on domestic copper production and whether additional measures, including tariffs or quotas, are necessary to protect national security."
The department should make recommendations on actions to mitigate a threat, if it finds one, "including potential tariffs, export controls, or incentives to increase domestic production; and policy recommendations for strengthening the United States copper supply chain through strategic investments, permitting reforms, and enhanced recycling initiatives."
One reporter on the call noted that the U.S. exports more copper than it imports, but the White House official said that "doesn't inform our thinking. This is about the national security threat that arises from forecasts of demand and cost. ... In the event of geopolitical turmoil, we run the risk of interdictions that would make it difficult for us to defend ourselves and basically run a prosperous economy."
The White House said that 45% of the copper consumed in the U.S. was imported, and that in 1991, there were basically no imports.
The official said the need for copper is building as electrification picks up speed, including electric vehicles, as well as the increased demand for electricity for data centers used for artificial intelligence. Copper is needed for economic security and energy resilience, he said.
Commerce Secretary Howard Lutnick said in a statement: "Like our steel and aluminum industries, our great American copper industry has been decimated by global actors attacking our domestic production." While the statement said the investigation will see if tariffs are necessary, it also said, "copper ... should be made in America, no exemptions, no exceptions. America first creates jobs and protects our national security. It’s time for copper to come home.”
In response to a question from International Trade Today, the White House official said he couldn't specify what derivative products will be considered. He was also asked by ITT if staff reductions under the Department of Government Efficiency might make it harder for the International Trade Administration to get the report done promptly. "With regards to DOGE and ITA, I have no window into that world," he replied. "I don't anticipate [at] the Commerce Department under Howard Lutnick, there's going to be an issue of getting resources pointed in the right direction."