The Initial Clash of the China-US Trade War: Does the Mutual Imposition of Tariffs Affect China's Imported Copper? [SMM Analysis]

Published: Feb 5, 2025 17:03
[SMM Analysis: The Initial Clash of the US-China Trade War - Will Mutual Tariff Hikes Impact China's Imported Copper?] On February 1, 2025, the US government announced a 10% tariff hike on all Chinese exports to the US, citing issues such as fentanyl. As a reciprocal countermeasure, starting February 10, 2025, tariffs were raised on certain imported goods originating from the US. The initial clash of the US-China trade war has drawn market attention, with market participants concerned about whether the onset of the trade war might disrupt the copper supply chain.

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       On February 1, 2025, the US government announced a 10% tariff hike on all Chinese goods exported to the US, citing issues such as fentanyl. As a reciprocal countermeasure, starting February 10, 2025, China imposed additional tariffs on certain US-origin imported goods. This initial clash in the US-China trade war drew market attention, with participants concerned about whether the onset of the trade war might disrupt copper supply.

       From the data, in 2024, China imported 460,000 mt of copper concentrates from the US, while China's total annual copper concentrate imports reached 28.16 million mt. The US's contribution to China's copper concentrate supply was not significant. In the same year, China imported 440,000 mt of copper scrap from the US, out of a total annual copper scrap import volume of 2.25 million mt, making the US's contribution to China's copper scrap supply highly significant.

       According to official announcements, the current stage of the trade war has not significantly impacted non-ferrous metal trade between China and the US. At this stage, the focus is on imposing a 15% tariff on energy and chemical bulk commodities. Citing the "Announcement by the Customs Tariff Commission of the State Council on Imposing Tariffs on Certain US-Origin Imported Goods": “On February 1, 2025, the US government announced a 10% tariff hike on all Chinese goods exported to the US, citing issues such as fentanyl. The unilateral tariff hike by the US seriously violates WTO rules, does not help resolve its own issues, and disrupts normal economic and trade cooperation between China and the US.

       In accordance with the "Customs Law of the People's Republic of China," the "Foreign Trade Law of the People's Republic of China," and other relevant laws and international legal principles, and with the approval of the State Council, China will impose additional tariffs on certain US-origin imported goods starting February 10, 2025. Details are as follows:

       1. A 15% tariff will be imposed on coal and liquefied natural gas. The specific scope of goods is listed in Annex 1.

       2. A 10% tariff will be imposed on crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks. The specific scope of goods is listed in Annex 2.

       3. For US-origin imported goods listed in the annexes, additional tariffs will be imposed on top of the current applicable tariff rates. Existing bonded and tax reduction/exemption policies remain unchanged, and the additional tariffs will not be exempted.”

       However, if the trade war escalates further and reciprocal sanctions between China and the US continue to intensify, the imposed tariffs may eventually affect non-ferrous metal trade.

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Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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