Copper prices jump as Trump eyes tariffs

WASHINGTON, D.C., February 26, 2025 – US President Donald Trump has ordered an investigation into whether foreign copper imports pose a threat to national security, a move that could lead to new tariffs on the metal.

The probe, to be conducted under Section 232 of the Trade Expansion Act, gives the US Commerce Department up to 270 days to assess the impact of copper imports and report its findings to the president. The investigation will cover raw mined copper, refined copper, alloys, scrap and certain derivative products made with copper.

“Tariffs can help build back our American copper industry, if necessary, and strengthen our national defense,” Secretary of Commerce Howard Lutnick said. “American industries depend on copper, and it should be made in America – no exemptions, no exceptions.”

Comex copper prices surged 4.8% to USD 4.746 a pound following the announcement, with US-traded copper miner Freeport-McMoRan Inc. climbing more than 6% in after-market trading. London Metal Exchange futures also gained 1%.

The White House framed the move as both an economic and national security measure, citing copper’s critical role in manufacturing, construction and military applications. Peter Navarro, senior counsellor for trade and manufacturing, said Lutnick would move “in Trump time, which is as quickly as possible, and get the results of his investigation to the president’s desk for possible action.”

The US is a net importer of copper, consuming about USD 17 billion worth in 2024, with imports accounting for approximately 45%. Chile is the largest foreign supplier, shipping USD 4.63 billion of the metal annually to the USA, followed by Canada, Peru, Mexico and the Democratic Republic of the Congo.

Trump has previously announced plans to impose 25% tariffs on all steel and aluminium imports starting March 12, expanding Section 232 actions he took during his first term. He has also imposed a 10% tariff on all Chinese products and threatened levies on Canadian and Mexican exports.

The president said in a social media post that the “Great American Copper Industry has been decimated by global actors attacking our domestic production.”

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