United States Impose Tariff on Copper Imports
ADJUSTING IMPORTS OF COPPER INTO THE UNITED STATES Proclamation
July 30, 2025
Section 232 Copper Investigation Summary
The Secretary of Commerce has determined that copper imports pose a threat to U.S. national security, following a comprehensive investigation under Section 232 of the Trade Expansion Act.
Below is a summary of the published Proclamation. To review the full document please click on the link below:
ADJUSTING IMPORTS OF COPPER INTO THE UNITED STATES Proclamation
Key Findings
Critical National Security Material: Copper ranks as the second most widely used material by the Department of Defense, essential for aircraft, ground vehicles, ships, submarines, missiles, and ammunition production.
• Infrastructure Dependency: Copper’s exceptional electrical conductivity makes it indispensable to critical infrastructure sectors supporting the American economy, national security, and public health systems.
• Dramatic Production Decline: Despite being a world leader in copper production throughout most of the 20th century, U.S. copper production has plummeted significantly.
• Foreign Market Dominance: A single foreign country now controls over 50% of global smelting capacity and operates four of the world’s five largest refining facilities, creating dangerous dependency.
• Unfair Trade Practices: Foreign competitors utilize state subsidies and overproduction to flood international markets with artificially low-priced copper products, systematically driving U.S. producers out of business.
• Regulatory Burden: Overly burdensome environmental regulations at home, combined with unfair foreign trade practices, have hollowed out U.S. copper refining and smelting capabilities.
• Supply Chain Vulnerability: The United States faces dangerous dependency on foreign imports of semi-finished copper, intensive copper derivative products, and copper-containing products.
• Economic Impact: Global market imbalances make domestic investment increasingly unviable, threatening further closures of domestic production facilities.
• Strategic Risk: Current import quantities and circumstances of global excess capacity weaken the U.S. economy and shrink the nation’s ability to meet national security production requirements.
• Limited Alternatives: Substitutes for copper are insufficient for vital industries and products in many critical applications, making dependency particularly concerning.
National Security Implications
The investigation concludes that U.S. dependency on foreign copper sources creates a national security vulnerability that hostile nations could exploit. This dependency weakens industrial resilience, exposes Americans to supply chain disruptions, creates economic instability, generates strategic vulnerabilities, and jeopardizes the defense industrial base.
The Secretary’s findings emphasize the close relationship between economic welfare and national security, highlighting the urgent need for corrective action to address these mounting threats to America’s strategic interests.
National Security Action Summary
Following a comprehensive review, the Secretary of Commerce determined that copper imports threaten U.S. national security and recommended immediate protective measures. The President has concurred with these findings and authorized significant trade actions.
Core Tariff Policy
- 50% tariff imposed on all imports of semi-finished copper products and intensive copper derivative products as specified in the proclamation’s Annex
- Effective date: August 1, 2025, at 12:01 a.m. Eastern Daylight Time for goods entered for consumption or withdrawn from warehouse
- Duration: Continues indefinitely unless expressly reduced, modified, or terminated by future action
- Additional burden: This tariff applies in addition to existing duties, fees, and charges on these copper products
Administrative Implementation
- Secretary’s authority: Must consult with the U.S. International Trade Commission and U.S. Customs and Border Protection (CBP) to determine necessary modifications to the Harmonized Tariff Schedule of the United States (HTSUS)
- Federal Register notice: Any required HTSUS modifications will be published through official Federal Register announcements
- 90-day timeline: Within three months of proclamation, the Secretary must establish processes for adding more derivative copper articles to the tariff scope
- Consistency requirement: New processes must align with existing aluminum and steel import adjustment proclamations (10895 and 10896 from February 2025)
Comprehensive Duty Structure
- Non-copper content taxation: All non-copper components in affected articles face additional tariffs under Executive Order 14257 (Reciprocal Tariff order from April 2025)
- Multiple duty sources: Products may be subject to duties from various executive orders addressing:
- Northern border drug trafficking (Executive Order 14193)
- Southern border situations (Executive Order 14194)
- Chinese synthetic opioid supply chains (Executive Order 14195)
- Copper-specific application: The new 50% tariff applies exclusively to the copper content portion of imported articles
Compliance and Enforcement
Strict declaration requirements: CBP will issue authoritative guidance mandating precise compliance with copper content declaration requirements
Severe penalties: Importers submitting underreported declarations face:
- Significant monetary penalties
- Loss of import privileges
- Potential criminal liability under U.S. law
Maximum enforcement: CBP guidance will outline maximum penalties for noncompliance violations
Special Provisions and Exceptions
Automobile precedence: Products subject to both this copper proclamation and automobile/auto parts tariffs (Proclamation 10908 from March 2025) will be governed by the automobile proclamation duties instead
Foreign trade zone requirements: Copper products entering U.S. foreign trade zones on or after the effective date must be admitted as “privileged foreign” status rather than “domestic status”
Ad valorem rates: Foreign trade zone products remain subject to applicable ad valorem duty rates based on their HTSUS classification upon entry for consumption
Monitoring & Reporting
Ongoing Monitoring Mandate: The Secretary must continuously monitor copper and copper derivative imports, conducting periodic reviews in consultation with senior executive branch officials to assess national security implications
Presidential Reporting Requirements: The Secretary is required to inform the President of any circumstances that might necessitate further action under Section 232 trade authority
Critical 2026 Deadline: By June 30, 2026, the Secretary must provide a comprehensive update on domestic copper markets, including:
- Current refining capacity analysis
- Market conditions for refined copper in the United States
- Assessment of whether proposed import duties are warranted
Phased Import Duty Structure
The proclamation establishes a potential two-tier tariff system:
- 15% universal import duty on refined copper starting January 1, 2027
- 30% universal import duty starting January 1, 2028
- Implementation depends on the Secretary’s 2026 assessment and Presidential determination
Domestic Sales Requirements
The Secretary has delegated authority under Executive Order 13603 (National Defense Resources Preparedness) to implement domestic sales requirements as recommended in the June 30, 2025 report
• Regulatory Authority: The Secretary is empowered to issue comprehensive guidance including:
- Regulations and rules
- Operational procedures
- Measures addressing operational necessity
Drawback Eligibility
No Drawback Provision: Zero drawback availability for duties imposed under this proclamation, meaning importers cannot recover paid tariffs
Strategic Timeline
The proclamation establishes a multi-year implementation framework allowing for market assessment and gradual policy adjustment based on evolving national security needs
Legal Supremacy Clause: This proclamation supersedes any conflicting provisions in previous proclamations and Executive Orders
Severability Protection: If any provision is deemed invalid, the remainder of the proclamation remains enforceable
Flexibility Mechanism: The Secretary retains authority to recommend modifications or termination if circumstances change and duties become unnecessary
Implementation Timeline
With the August 1, 2025 effective date, importers and affected industries have limited time to adjust supply chains, review contracts, and ensure compliance with new declaration requirements. The 90-day window for establishing additional derivative product processes indicates potential for expanded coverage beyond the initial scope.
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