[VT Washington, D.C.] On February 25, U.S. President Donald Trump signed an executive order directing the Department of Commerce to initiate an investigation under Section 232 of the Trade Expansion Act of 1962 into the national security implications of copper imports. The investigation will assess whether reliance on foreign copper sources poses a risk to the United States and may lead to potential trade measures, including tariffs or quotas.
The executive order states that copper is essential for national security, defense applications, infrastructure, and emerging technologies such as clean energy and electric vehicles. The order highlights concerns about the concentration of global copper refining and smelting capacity, noting that a single foreign producer controls over 50% of global smelting capacity and four of the top five largest refining facilities. The investigation will examine supply chain vulnerabilities, the role of foreign suppliers, and the impact of global market dynamics on U.S. industry.
The Department of Commerce will conduct a comprehensive review of all forms of copper imports, including raw copper, concentrates, refined copper, alloys, scrap copper, and derivative products. The investigation will consider factors such as domestic production capacity, trade policies, foreign government subsidies, and potential supply chain disruptions. The agency will consult with the Department of Defense, the Department of the Interior, the Department of Energy, and other relevant agencies.
According to the executive order, the Secretary of Commerce must submit a report to the President within 270 days, outlining the findings of the investigation and providing recommendations, including possible trade actions or policy measures to strengthen the U.S. copper supply chain.
The announcement has drawn international attention. According to U.S. Census Bureau data, Chile, Canada, and Mexico were the largest suppliers of refined copper and copper products to the U.S. in 2024. Market reactions were immediate, with copper futures rising following the news.
The investigation’s outcome, along with any potential trade measures, will be closely watched in the coming months.
