Trump orders new tariff probe into US copper imports
WASHINGTON : President Donald Trump opened yet another front on Tuesday in his assault on global trade norms, ordering a probe into potential new tariffs on copper imports to rebuild U.S. production of a metal critical to electric vehicles, military hardware, the power grid and many consumer goods.
Trump, looking to thwart what his advisers see as a move by China to dominate the global copper market, signed an order at the White House directing Commerce Secretary Howard Lutnick to start a national security probe under Section 232 of the Trade Expansion Act of 1962. That is the same law Trump used in his first term to impose 25% global tariffs on steel and aluminum.
A White House official, briefing reporters on condition of anonymity, said any potential tariff rate would be determined by the investigation, adding that Trump preferred tariffs over quotas.
The move is the latest by Trump to upend decades of business support for free trade that he railed against as both candidate and president for hollowing out the U.S. industrial base, an upheaval now aimed at long-time U.S. allies like Canada and Mexico as well geopolitical adversaries like China.
He has issued a cascade of tariff orders since taking up residency in the White House for a second term last month. While only a new 10% levy on all imports from China is in place, 25%duties on goods from Canada and Mexico are set to take effect next week and others aimed at steel, aluminum and motor vehicles will follow shortly afterward or are in fast-track development.
Trump’s blitz has begun to take a toll on consumer confidence, which had initially surged following his election victory in November over former President Joe Biden as Trump promised to bring down living costs. Earlier on Tuesday the Conference Board reported the largest drop in consumer confidence in three-and-a-half years, with households expecting a resurgence in inflation.
Ahead of the copper announcement, stocks fell on Wall Street for a fourth straight day, a drop pinned on growing uncertainty about Trump policies on trade in particular.
But there were pockets of upside among perceived winners: Shares of the world’s largest copper producer, Phoenix-based Freeport-McMoran , opens new tab shot up 5% in after-hours trading. The company, which produced 1.26 billions of copper in the U.S. last year, did not immediately respond to a request for comment.
London-based Antofagasta (ANTO.L), opens new tab declined to comment on Trump’s action. The company is trying to develop the $1.7 billion Twin Metals copper and nickel mine in Minnesota, but saw its mineral rights blocked under former president Biden’s administration over water pollution concerns.
Trump has vowed to ease regulations on businesses to boost U.S. economic growth.
TARGETING CHINA
White House trade adviser Peter Navarro said the investigation would be completed quickly, “in Trump time.”
Navarro said China was using state subsidies and excess capacity to undermine competition and gain control over global copper production, in much the same way it now dominates steel and aluminum production.
That said, the countries set to be most affected by any new U.S. copper tariffs would be Chile, Canada and Mexico, which were the top suppliers of refined copper, copper alloys and copper articles in 2024, according to U.S. Census Bureau data.
Source : Reuters