US Investigates Copper Imports
Feb 28, 2025
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According to MiningWeekly, US President Trump has opened up another global trade front.
Copper is crucial to the production of electric vehicles, military equipment, power grids and many consumer goods. To restore domestic copper production in the United States, Trump has ordered an investigation into copper imports, and the results of the investigation will be used as the basis for the imposition of new tariffs.
Trump adopted the advice of an adviser and directed Commerce Secretary Howard Lutnick to initiate a national security investigation under Section 232 of the Trade Expansion Act of 1962. This is the same law on which Trump imposed a 25% tariff on steel and aluminum during his first term.
A White House official who declined to be named revealed that Trump prefers to adopt tariffs rather than quota measures.
The move is the latest move by Trump to subvert global free trade rules for decades. He both criticized free trade for hollowing out the U.S. industrial base as a candidate and during his presidency, targeting not only geopolitical opponents, but also long-time allies such as Canada and Mexico.
Since his second term, Trump has announced a series of tariff orders. Next week, a 25% tariff on Canadian and Mexican goods will be imposed, and other tariff orders on steel, aluminum and automobiles will soon be effective or quickly drafted.
The consequences of Trump's tariff blitzkrieg on consumer confidence have emerged. Earlier Tuesday, a report from the World Federation of Large Enterprises showed that the consumer confidence index showed its biggest drop in three and a half years, with inflation expected to rise again.
U.S. stocks had fallen for the fourth consecutive trading day ahead of the announcement of the copper investigation order, and the market was particularly worried about the widening uncertainty brought about by Trump's policy.
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