Early this year, President Donald Trump signed an executive order that demanded a formal review of how importing copper might affect the country’s security. His concern was that relying too much on copper from other countries could put the United States at risk in areas like defense, technology, and infrastructure.
The order explained that the country’s copper supply system is weak in some areas, especially because America is now bringing in more copper from abroad than before. “The United States has good copper reserves,” it read, “but we are falling behind other countries when it comes to smelting and refining.”
Trump also mentioned earlier in the year that he might introduce tariffs on copper imports. He talked about placing taxes as high as 25 percent on these imported materials.
Economists have long expressed concern that putting high taxes on widely used items like copper can lead to extra costs for the public.
During Trump’s first term in office, a study from the University of Chicago’s economics institute showed that tariffs on washing machines and dryers led to American shoppers paying more than $1.5 billion in extra costs. The study broke it down to about $86 more per washing machine and $92 more for dryers.
Now, some experts are warning that if Trump taxes copper imports, people might start paying more for products that contain copper. This includes everyday items like electric cars, smartphones, and other home electronics.
Figures from Reuters show that close to half of all refined copper used in the U.S. comes from other countries. Chile provides the most, followed by Canada and Peru. As for copper mined inside the country, Arizona stands out, producing about 70 percent of the total mined copper in 2024, according to the U.S. Geological Survey.
Copper at the Center of Economic and Environmental Debate
Efforts to increase America’s copper output have sparked arguments for years. This debate has pulled in environmental groups, industry leaders, and politicians, continuing through President Biden’s administration.
There are two strong sides to this matter. One group believes that copper should be mined more within the country, since it is vital for making green energy tools like wind turbines and batteries.
These technologies are important for tackling climate problems. But the other group points out that new mining sites could harm natural areas that should remain untouched.
After Trump announced possible copper tariffs, copper futures traded in the U.S. jumped sharply. Comex copper futures surged by more than 12 percent and reached a record high on Tuesday.
