White House Delays Copper Tariffs Amid Cost Concerns
The US government is weighing the benefits of tariffs on refined copper against potential higher costs for industries that rely on it. According to Reuters, two sources familiar with the discussions said the White House is considering the impact of higher copper prices on domestic manufacturing costs.
As President Donald Trump's administration seeks to boost domestic production, affordability has become a key concern ahead of the midterm elections in November. Trump and Republican lawmakers are under pressure to demonstrate that their economic policies can reduce costs for consumers and businesses, rather than increase them.
The White House has yet to set tariffs on refined copper, although markets had previously expected the US government to expand import duties to cover the product. A 15% tariff from 1 January 2027 is being considered, which would then rise to 30% in 2028.
US Copper Imports Surge
The US remains dependent on global supplies to meet its copper needs. The country imports around half of its annual copper requirements and has only two operating copper smelters, owned by Freeport-McMoRan and Rio Tinto respectively. Import tariffs could make foreign copper more expensive while improving the economics of mining, smelting and refining projects in the US.
However, the policy also risks increasing production costs for industries that rely on copper, including manufacturers of electrical equipment, vehicles, construction materials and other industrial goods. This leaves the US government facing a dilemma: how to encourage domestic copper production without adding to inflationary pressures and the cost of living.