Copper Tariffs Don't Apply to Ores or Concentrates, Scrap, Cathodes, Anodes, Mattes
The scope of the Section 232 copper tariffs is narrower than was expected, as the 50% rate only applies to semi-finished copper products, such as copper pipes, wires, rods, sheets, and tubes, and products that use a lot of copper, such as pipe fittings, cables, connector and electrical components -- not to copper ores, concentrates, mattes, cathodes, anodes, or copper scrap.
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The White House proclamation says the new tariffs will begin Aug 1.
The Commerce Department report that justifies the tariffs on national security grounds was not published on the Bureau of Industry and Security site, but summaries of some of its conclusions in the executive order revealed that the 50% rate didn't come from that analysis.
The order said, "The Secretary recommended an immediate universal 30 percent import duty on semi-finished copper products and intensive copper derivative products. The Secretary also recommended a phased universal tariff on refined copper of 15 percent starting in 2027 and 30 percent starting in 2028. The Secretary further recommended a domestic sales requirement for copper input materials starting at 25 percent in 2027, a domestic sales requirement of 25 percent for high-quality copper scrap, and export controls for high-quality copper scrap."
It also said that the report said that the U.S. had been a world leader across the copper chain for most of the 20th century, including mining, refining, semi-finished goods and finished copper goods. "The Secretary found that unfair trade practices abroad, exacerbated by overly burdensome environmental regulations at home, have hollowed out United States copper refining and smelting, caused the United States to be overly reliant on foreign copper imports, and prevent a path forward without strong corrective action," the order says.
The order says that by June 30, 2026, "the Secretary shall provide the President with an update on domestic copper markets, including refining capacity and the market for refined copper in the United States, so that the President may determine whether imposing a phased universal import duty on refined copper of 15 percent starting on January 1, 2027, and 30 percent starting on January 1, 2028, as recommended by the June 30, 2025, report, is warranted to ensure that copper imports do not continue to threaten to impair the national security. The Secretary shall also inform the President of any circumstance that, in the Secretary’s opinion, might indicate that the duty rate provided for in this proclamation, or any actions modifying this proclamation, is no longer necessary."
The Commerce Department will begin a process within 90 days to consider additional items that contain copper that should face 50% tariffs on the copper content. For derivatives, the non-copper content will be subject to most favored nation and reciprocal tariffs, but the copper tariff will not stack on reciprocal tariffs.
If a product is subject to the 25% auto Section 232 tariff, then that applies, not the copper tariff.
The order says, "Consistent with the General Terms for the United States of America and the United Kingdom of Great Britain and Northern Ireland Economic Prosperity Deal (May 8, 2025), the United States intends to coordinate with the United Kingdom to adopt a structured, negotiated approach to addressing the national security threat in the copper sector."
According to Cato Institute, a libertarian think tank, Canada supplies about 42% of copper products that will be subject to the tariffs; South Korea, 10%, and Germany, 8%.
The Coalition for a Prosperous America, a trade group for domestic manufacturers, hailed the result of the report. "For decades, U.S. trade policy ignored the erosion of our custom fabricators, our mid-level manufacturing capacity,” the group's president wrote. "Today’s action to directly target the midstream layer -- rods, pipes, wires, connectors, and other semi-finished copper products that are essential to our economy and national security is extremely welcome. Combining the Section 232 action with the use of the Defense Production Act to ensure a robust supply of copper scrap for recycling is extraordinary. This is a seismic change in how America protects its industrial supply chains -- a big win for fabricators who have largely been ignored until now."