President Trump has ordered a new tariff investigation into US copper imports
In the field of tariffs, Trump has once again opened a new "front." On Tuesday, he signed an executive order directing the US Secretary of Commerce to launch an investigation under Section 232 of the Trade Expansion Act of 1962 into how copper imports threaten US national security and economic stability, which could eventually lead to tariffs on copper imports. The move is seen as a new front opened by Trump in a potential global "trade war" aimed at rebuilding the US copper production system.
Trump recognizes that over-reliance on foreign copper could jeopardize U.S. defense capabilities, infrastructure development, and technological innovation. Therefore, he signed this executive order to investigate whether the production and import of foreign copper products poses a risk to the U.S. economy and national security. U.S. Commerce Secretary Howard Lutnick said U.S. industry and defense depend on copper, which should be made in the United States with no exemptions and no exceptions. He stressed that it was time to bring copper back to America.
The Trump administration's move builds on previous actions it has taken to ensure that U.S. trade policy is in the country's long-term interest. The investigation will include raw copper, refined copper, copper alloys, copper scrap and other copper derivatives. Depending on the outcome of the investigation, tariffs could be imposed on imported copper. However, the White House has provided little information on when the tariffs will be announced and what the rates will be, saying it does not want to prejudge the outcome of the investigation.
Peter Navarro, Trump's senior adviser on trade and manufacturing, said Lutnik would move quickly to present the findings to the president as soon as possible to determine next steps. The news, New York COMEX copper futures trading prices rose, the share price of related companies also ushered in a small increase.
The opening of the 232 investigation has further raised market expectations that the United States may impose higher tariffs on copper, which may lead to market expectations of tariffs from 10% to 15% to 20% or more, which will affect subsequent COMEX spreads. Although the investigation period is long, the high COMEX price spread may become the norm and may prompt the market to increase its willingness to export to the United States in the short term, not only for copper, but also for related products.
These investigations could take several months to complete. The countries most affected by potential U.S. copper tariffs would be Chile, Canada and Mexico, the largest suppliers of refined copper and copper products to the United States in 2024. The survey will look at the various types of copper products imported and forecast a future copper shortage in the United States based on the demand for electric vehicles and artificial intelligence. The United States cannot develop sufficient copper smelting and refining capacity unless there is long-term trade protection for the industry.
However, Trump's move has also sparked some controversy and concern. Some analysts believe that potential copper tariffs will affect related U.S. businesses, from automakers to communications equipment makers to construction companies, because they rely on copper to make their products. Mr Trump's move will raise costs for businesses and could provoke a backlash. In addition, Chile, a copper superpower, suffered its worst power outage in 15 years, which could have an impact on the global copper market.
Taken together, the Trump administration's moves to investigate and consider tariffs on copper imports are aimed at strengthening national security and economic stability in the United States and rebuilding the country's copper production system. However, the move has also sparked some controversy and concerns, and could have an impact on the global copper market and related U.S. companies. Future attention will also need to be paid to the results of the investigation and the specific measures that the Trump administration will take.
After his second term in the White House, Trump launched a plan for "reciprocal tariffs," which aims to deal with and punish countries for what he considers unfair trade practices by adjusting the tariff rates the United States imposes on other countries.
On February 10, local time, Trump signed an executive order announcing tariffs of up to 25% on all steel and aluminum products imported into the United States, and made it clear that there are "no exceptions and exemptions." The move has drawn wide attention from the international community. Before that, Trump also announced that he would impose a 25 percent tariff on all imports from Mexico and Canada. However, before the relevant policy was expected to take effect on the 4th Eastern time, Trump decided to postpone the imposition of tariffs on the two countries after speaking with Mexican President Simbaum and Canadian Prime Minister Justin Trudeau.
In addition, the Trump administration has imposed a 10% tariff on all Chinese exports to the United States. This move has triggered strong dissatisfaction and firm opposition from China. A spokesman for China's Commerce Ministry quickly responded, saying China would take countermeasures. Subsequently, the Customs Tariff Commission of The State Council of China issued a notice announcing that from February 10, some imported goods originating in the United States will be subject to additional tariffs. Specifically, a 15% tariff on coal and liquefied natural gas; A 10% tariff on crude oil, agricultural machinery, large cars and pickup trucks; For other parts of imported goods originating in the United States, corresponding tariffs shall be imposed separately on the basis of the existing applicable tariff rates. At the same time, the announcement also clearly pointed out that the current bonded, tax reduction and exemption policies remain unchanged, and the tariffs imposed this time will not be reduced.
Trump recognizes that over-reliance on foreign copper could jeopardize U.S. defense capabilities, infrastructure development, and technological innovation. Therefore, he signed this executive order to investigate whether the production and import of foreign copper products poses a risk to the U.S. economy and national security. U.S. Commerce Secretary Howard Lutnick said U.S. industry and defense depend on copper, which should be made in the United States with no exemptions and no exceptions. He stressed that it was time to bring copper back to America.
The Trump administration's move builds on previous actions it has taken to ensure that U.S. trade policy is in the country's long-term interest. The investigation will include raw copper, refined copper, copper alloys, copper scrap and other copper derivatives. Depending on the outcome of the investigation, tariffs could be imposed on imported copper. However, the White House has provided little information on when the tariffs will be announced and what the rates will be, saying it does not want to prejudge the outcome of the investigation.
Peter Navarro, Trump's senior adviser on trade and manufacturing, said Lutnik would move quickly to present the findings to the president as soon as possible to determine next steps. The news, New York COMEX copper futures trading prices rose, the share price of related companies also ushered in a small increase.
The opening of the 232 investigation has further raised market expectations that the United States may impose higher tariffs on copper, which may lead to market expectations of tariffs from 10% to 15% to 20% or more, which will affect subsequent COMEX spreads. Although the investigation period is long, the high COMEX price spread may become the norm and may prompt the market to increase its willingness to export to the United States in the short term, not only for copper, but also for related products.
These investigations could take several months to complete. The countries most affected by potential U.S. copper tariffs would be Chile, Canada and Mexico, the largest suppliers of refined copper and copper products to the United States in 2024. The survey will look at the various types of copper products imported and forecast a future copper shortage in the United States based on the demand for electric vehicles and artificial intelligence. The United States cannot develop sufficient copper smelting and refining capacity unless there is long-term trade protection for the industry.
However, Trump's move has also sparked some controversy and concern. Some analysts believe that potential copper tariffs will affect related U.S. businesses, from automakers to communications equipment makers to construction companies, because they rely on copper to make their products. Mr Trump's move will raise costs for businesses and could provoke a backlash. In addition, Chile, a copper superpower, suffered its worst power outage in 15 years, which could have an impact on the global copper market.
Taken together, the Trump administration's moves to investigate and consider tariffs on copper imports are aimed at strengthening national security and economic stability in the United States and rebuilding the country's copper production system. However, the move has also sparked some controversy and concerns, and could have an impact on the global copper market and related U.S. companies. Future attention will also need to be paid to the results of the investigation and the specific measures that the Trump administration will take.
After his second term in the White House, Trump launched a plan for "reciprocal tariffs," which aims to deal with and punish countries for what he considers unfair trade practices by adjusting the tariff rates the United States imposes on other countries.
On February 10, local time, Trump signed an executive order announcing tariffs of up to 25% on all steel and aluminum products imported into the United States, and made it clear that there are "no exceptions and exemptions." The move has drawn wide attention from the international community. Before that, Trump also announced that he would impose a 25 percent tariff on all imports from Mexico and Canada. However, before the relevant policy was expected to take effect on the 4th Eastern time, Trump decided to postpone the imposition of tariffs on the two countries after speaking with Mexican President Simbaum and Canadian Prime Minister Justin Trudeau.
In addition, the Trump administration has imposed a 10% tariff on all Chinese exports to the United States. This move has triggered strong dissatisfaction and firm opposition from China. A spokesman for China's Commerce Ministry quickly responded, saying China would take countermeasures. Subsequently, the Customs Tariff Commission of The State Council of China issued a notice announcing that from February 10, some imported goods originating in the United States will be subject to additional tariffs. Specifically, a 15% tariff on coal and liquefied natural gas; A 10% tariff on crude oil, agricultural machinery, large cars and pickup trucks; For other parts of imported goods originating in the United States, corresponding tariffs shall be imposed separately on the basis of the existing applicable tariff rates. At the same time, the announcement also clearly pointed out that the current bonded, tax reduction and exemption policies remain unchanged, and the tariffs imposed this time will not be reduced.
