A new 50% tariff on copper imports will take effect August 1 following a Section 232 national security review, adding fresh cost pressure to metals supply chains. In 2024, Chile and Canada accounted for more than $10 billion of copper shipments to the U.S., according to trade data.
Section 232 Probe Cites National Security Rationale
President Donald Trump confirmed the new tariff via Truth Social, days after hinting at action on copper and pharmaceuticals. The decision follows a Section 232 investigation launched earlier this year to evaluate the impact of copper imports on national security and the viability of domestic supply. The probe directed the Commerce Department to assess whether trade protections, such as tariffs or quotas, were needed to safeguard critical metal production.
Copper, widely used in defense, construction, and electronics, has become a focus of trade policy in a broader effort to shore up industrial capacity. The Section 232 mechanism was previously used to justify sweeping duties on steel and aluminum. According to public filings, the 2024 copper import bill exceeded $10 billion from Chile and Canada alone, both of which now face pricing pressure from the new tariff.
Tariff Likely to Raise Input Costs Across Sectors
Industry analysts warned the copper duties will ripple through multiple sectors, from electrical manufacturing to automotive and renewable energy. “Copper tariffs will represent yet another source of cost-push inflation due to higher prices for imported metals,” noted Jason Miller, interim chair of supply chain management at Michigan State University, in a LinkedIn post.
While the administration framed the tariff as a national security measure, companies reliant on imported copper now face decisions on sourcing, inventory strategy, and contract renegotiation. With pharmaceutical tariffs also potentially on the horizon, the copper move signals a renewed push for trade tools that double as industrial policy levers.
Beyond the Tariff: Rethinking ‘Friendly’ Supply Chains
The inclusion of Canada, a longstanding trade ally and USMCA partner, within the scope of this tariff quietly challenges assumptions about the permanence of “friendly” sourcing relationships. As trade policy increasingly flexes for strategic advantage, even close partners may face disruptions without warning. For procurement teams, the lesson isn’t just about risk diversification across countries, it’s about building agility into the entire sourcing framework, including contract terms, buffer inventory strategies, and substitution planning for critical inputs like copper.
