- The proclamation does not include tariffs on upstream input materials
- President Trump justified the action—as he has with past tariffs—on national security concerns
- The Copper Development Association issued a statement in support of the proclamation
WASHINGTON, DC — On July 30th, the White House issued a proclamation imposing a universal 50% tariff on imports of “semi-finished” copper products, including wires, sheets and pipes.
The proclamation does not include tariffs on upstream input materials such as copper ores, cathodes, anodes, and scrap. It does include targeted export controls prioritizing US sales of domestically produced copper scrap and input materials.
Justifications
President Trump justified the action—as the White House has in the past—on Section 232 of the Trade Expansion Act of 1962, a law that give the President the authority to impose tariffs (following a recommendation by the US Secretary of Commerce) if "an article is being imported into the United States in such quantities or under such circumstances as to threaten or impair the national security."
The body of the proclamation notes that for much of the 20th century the US was a world leader in the “value chain” of copper production, however in recent years domestic copper production has plummeted. The administration lays much of the blame for the decline on unfair trade practices abroad and over-regulation at home.
The proclamation goes on to say:
In my judgment, the action in this proclamation will, among other things, help increase domestic production of semi-finished copper products and intensive copper derivative products, thereby reducing our Nation’s reliance on foreign sources.
Reactions
The US imported $17 billion worth of copper last year, according to US Commerce Department data. Chile was the largest foreign supplier of the metal, shipping $6 billion worth of it to the US last year.
Tariffs are expected to go into effect August 1st. On Thursday, July 31st, US copper futures sank 20% to around $4.55 per pound, marking the largest intraday fall on record, according Trading Economics.
The Copper Development Association is the market development, engineering and information services arm of the copper industry, chartered to enhance and expand markets for copper and its alloys in North America. The CDA President and CEO, Adam Estelle issued a statement of support in the wake of President Trump’s proclamation saying:
The Copper Development Association thanks President Trump for his concerted efforts to ensure a stronger, more resilient and more reliable domestic copper industry. Upon initial review, we believe the Administration has taken decisive, comprehensive and calibrated actions designed to supercharge domestic production.
The forthcoming details will be important to understand full impacts, but the initial framework appears to be highly aligned with the solutions recommended by CDA's fabricator members. These actions support CDA's longstanding position that copper is critical to national security, energy dominance, AI supremacy, reshoring manufacturing and restoring America's standing as an industrial superpower. Now is the time to unleash American copper like never before.
CONTRACTOR will continue to report on this story in the coming weeks.
And for those in the electrical trades read about The Quest for Sustainable Components at sister publication ElectronicDesign.
About the Author
Steve Spaulding
Editor-in-Chief - CONTRACTOR
Steve Spaulding is Editor-in-Chief for CONTRACTOR Magazine. He has been with the magazine since 1996, and has contributed to Radiant Living, NATE Magazine, and other Endeavor Media properties.