Earlier today, the White House issued a proclamation Adjusting Imports of Copper into the United States citing the metal’s importance to national security and economic reliance on the material weeks after announcing a 50% tariff on imported copper via social media.
WHAT LED TO THE SECTION 232 INVESTIGATION INTO COPPER AND DERIVATIVE PRODUCTS?
Following Executive Order 14220 of February 25, 2025, the Secretary of Commerce initiated a Section 232 investigation to assess whether current copper import levels and global overcapacity threaten U.S. national security. This prior inquiry provided the factual basis for the July 30, 2025 Presidential Proclamation.
WHAT WERE THE SECTION 232 COPPER INVESTIGATION RESULTS?
On June 30, 2025, the U.S. Secretary of Commerce concluded that rising import volumes and global overcapacity threaten U.S. industrial resilience.
Key findings include:
- Domestic copper production has declined by double‑digit percentages over recent years while import reliance has approached fifty percent of consumption
- A single foreign producer controls over fifty percent of global smelting capacity and four of the five largest refining facilities
- Unbalanced trade practices abroad and stringent environmental regulations at home have hollowed out U.S. smelting and refining
- Supply disruptions or market manipulation could jeopardize defense readiness and critical‑infrastructure continuity
The Proclamation noted that the Secretary of Commerce, “found that the present quantities of copper imports and the circumstances of global excess capacity for producing copper are weakening our economy, resulting in the persistent threat of further closures of domestic copper production facilities and the shrinking of our ability to meet national security production requirements.”
HOW IS COPPER CRITICAL TO U.S. NATIONAL AND ECONOMIC SECURITY?
Copper’s unrivaled electrical conductivity and corrosion resistance underpin modern defense systems and essential infrastructure. As the Department of Defense’s second‑most used material, copper is integral to aircraft wiring, armored vehicles, naval vessels, missile guidance systems, and precision munitions. In civilian networks, copper enables grid reliability, renewable energy deployment, and advanced electronics. No alternative delivers equivalent performance at scale, creating a strategic supply‑chain vulnerability when domestic refining capacity is insufficient.
WHAT SECTION 232 COPPER AND DERIVATIVE TARIFFS WILL TAKE EFFECT ON AUGUST 1, 2025?
Effective August 1, the Proclamation applies a uniform 50 percent tariff to all imports of semi‑finished copper products such as copper pipes, wires, rods, sheets, and tubes, as well as copper‑intensive derivative items including pipe fittings, cables, connectors, and electrical components.
- 50% ad valorem duty on semi‑finished copper products (pipes, rods, sheets, tubes, wires) and copper‑intensive derivatives (cable assemblies, connectors, electrical components), levied on copper content only
- Exemption of primary inputs (ores, concentrates, mattes, cathodes, anodes) and copper scrap from Section 232 and reciprocal duties
- Non‑copper content of affected articles remains subject to existing reciprocal or statutory duties; copper and automobile Section 232 duties will not accumulate
- Commerce to institute a formal inclusion process for adding further copper derivatives to the tariff scope
HOW WILL THESE SECTION 232 COPPER TARIFFS IMPACT THE U.S. SUPPLY CHAIN?
America’s dependence on imported copper has climbed from almost zero in 1991 to 45 % of consumption in 2024, amplifying vulnerabilities in supply‑network security. The 50% Section 232 tariffs may lead to an initial increase in the price of imported copper, with downstream effects on electronics assembly, vehicle production, and building‑materials sourcing. Pivoting toward domestic mining and refining will require reconfiguring supply‑networks and committing to long‑term investments in U.S. production capacity. If key trading partners respond with their own restrictions, sectors that rely on imported copper components could encounter higher input costs and disruption risks.
WHAT STEPS ARE NECESSARY TO COMPLY WITH THIS SECTION 232 ACTION ON COPPER AND COPPER DERIVATIVE IMPORTS?
Work closely with your carriers and brokerage partners to verify compliance with all impacted imports. Ensure accurate classification under the Harmonized Tariff Schedule of the United States (HTSUS) to apply the correct tariff rates to copper products.
Key headings to verify include:
- Semi‑finished copper products
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7402.00 – Refined copper and copper alloys, unwrought (e g., cathodes and sections)
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7407.10 – Copper wire, rods and bars, including semi‑manufactured forms
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7409.11 – Copper sheets, plates and strips, rolled but not further worked
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7411.10 – Copper tubes and pipes, of refined copper
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- Copper‑intensive derivative products
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7412.10 – Copper pipe fittings (e g., elbows, tees, couplings)
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8544.49 – Insulated copper conductors (e g., power and telecom cables)
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8536.69 – Electrical connectors and components containing copper alloy elements
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Suppliers and importers should audit product specifications against these HTSUS headings to confirm tariff applicability and avoid misclassification penalties.
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