Major companies in the US copper metal industry have urged President Trump not to impose tariffs on copper imports, but instead to boost domestic production by restricting the export of copper ore and copper scrap.
In February, Trump signed an executive order directing the US Department of Commerce to conduct a "Section 232 investigation" on US copper imports, indicating that the "tariff stick" might be aimed at imported copper.
This move disrupted the global market, causing US copper prices to significantly premium over the international benchmark LME copper prices, and triggered a global "copper rush" as companies raced to ship copper to the US before potential tariffs took effect.
In the public comment period of the Section 232 investigation conducted by the US Department of Commerce, mining giant Rio Tinto Group, copper wire manufacturer Southwire, and trader Trafigura Group all recommended that the US government should restrict copper exports rather than impose tariffs on copper imports.
Rio Tinto wrote in its feedback, "The Trump administration should consider export restrictions on domestically produced copper concentrates and copper scrap." Southwire pointed out, "The government should focus on regulatory reforms and restricting US copper exports as the primary means to promote the development of the US copper industry."
It is understood that the US is the world's largest exporter of copper scrap and also exports copper ore. However, due to insufficient domestic refining capacity, US companies still need to import a large amount of refined copper metal. Therefore, they hope that Trump will not impose import tariffs on copper metal.
Trafigura Group believes that potential tariffs should target copper finished products, such as copper wire, copper pipe & tube, and copper strip. The world's largest copper trader also recommended that the US government "temporarily exempt refined copper imports from tariffs until new mining and smelting capacities are built."
US copper miner Freeport-McMoRan did not make specific recommendations on tariffs, but the company emphasized that the US should support free trade, "Promoting free and fair trade with US allies will ensure that US copper supply needs are met."
Freeport-McMoRan wrote in its survey feedback, "In 2024, the US imported about 50% of its copper cathode demand from Chile, Canada, Peru, and other countries, which is necessary due to the lack of potential production capacity in the US."
US companies also proposed a series of recommendations to support the development of the US copper industry, including introducing tax credit policies, simplifying the permitting process for new mines, and imposing tariffs on semi-finished products with higher copper content. Many companies pointed out that one of the biggest current challenges is how to encourage investment in new smelting capacity.
There are currently only three copper smelters in the US, one of which, the Hayden plant, is in a shutdown state. The plant's owner, Asarco LLC, requested in its submission to relax emission detection requirements to enable the restart of production.
