On February 25, 2025, President Donald Trump signed an Executive Order (EO) initiating an investigation under Section 232 of the Trade Expansion Act of 1962 to determine the effects on national security of imports of copper in all forms, including but not limited to: (i) raw mined copper; (ii) copper concentrates; (iii) refined copper; (iv) copper alloys; (v) scrap copper; and (vi) derivative products.  The EO states that “[c]opper is a critical material essential to the national security, economic strength, and industrial resilience of the United States…. [that plays] a vital role in defense applications, infrastructure, and emerging technologies, including clean energy, electric vehicles, and advanced electronics.”  This action triggers an investigation process that could result in new tariffs if the administration determines that U.S. reliance on overseas suppliers poses a threat to national security.

While acknowledging that the United States has sufficient copper reserves, the EO and an accompanying White House Fact Sheet note that the United States “faces significant vulnerabilities in the copper supply chain, with increasing reliance on foreign sources for mined, smelted, and refined copper.”  U.S. smelting and refining capacity lags behind global competitors, including China which controls over 50% of global smelting.  The Fact Sheet states that reliance on copper imports has surged “from virtually 0% in 1991 to 45% of consumption in 2024, heightening risks to supply chain security” and potentially threatening to disrupt copper availability for U.S. defense and industry needs.

The Secretary of Commerce will initiate a formal investigation and within 270 days submit a report to President Trump with findings and recommendations on potential actions to mitigate any national security threats.  Among the factors the investigation is to assess are:  (i) the extent to which domestic production, smelting, refining, and recycling can meet demand; (ii)  the role of foreign supply chains; (iii) the impact of foreign government subsidies, overcapacity, and predatory trade practices on U.S. industry competitiveness; (iv) the potential for export restrictions by foreign nations; and (v) the feasibility of increasing domestic copper mining, smelting, and refining capacity.   

While the Section 232 process allows for public comment and hearings, it is unknown at this time whether Secretary of Commerce Howard Lutnick will direct such a process.