President Trump Announces 50% Tariff on Copper: Mining and Upstream Users Experience Record Price Surge

The following day, using his Truth Social platform, the president confirmed that the tariff would be imposed starting on August 1 and that he was acting on a US Department of Commerce report:

I am announcing a 50% TARIFF on Copper, effective August 1, 2025, after receiving a robust NATIONAL SECURITY ASSESSMENT. Copper is necessary for Semiconductors, Aircraft, Ships, Ammunition, Data Centers, Lithium-ion Batteries, Radar Systems, Missile Defense Systems, and even, Hypersonic Weapons, of which we are building many. Copper is the second most used material by the Department of Defense!

This announcement is the result of one of seven Section 232 investigations initiated this year by the Trump Administration. Two of these investigations, conducted by Commerce, concern the effect copper and critical mineral imports have on “national security.” If Commerce finds a threat to national security, Trump may choose to impose tariffs or other restrictions on imports covered by the investigation.

What Are Section 232 Investigations?

Section 232 investigations are authorized by the 1962 Trade Expansion Act, which delegates US Congressional power to regulate commerce with foreign nations to the president. This legislation permits the president to impose import restrictions on certain industries if Commerce, after an investigation, determines that the quantity or other circumstances of these imports “threaten to impair” US national security.

On February 25, the Trump Administration issued an Executive Order calling for a Section 232 investigation into the import of raw copper, copper concentrates, refined copper, alloys, and derivative products made with copper components. On April 15, an investigation into critical minerals and their derivative products was announced. The critical mineral investigation covers 50 minerals crucial to the production of defense, energy, automotive, and communications technology.

Commerce is required to complete its investigations within 270 days of initiating the investigation and provide its completed report to the president. Typically, these reports are made public.[1]

The public comment period closed for the copper investigation on April 1 and for the critical minerals investigation on May 16. The copper investigation received 94 comments from various industry leaders, governments, and environmental groups. Most of the comments cautioned against widespread tariffs on copper and highlighted the many difficulties of expanding domestic copper production in the United States. The critical minerals investigation received 495 comments from similar groups. Most also highlight the difficulties of substituting domestic production for imports and caution against a broad definition of a “national security threat.”

What Is a National Security Threat?

Historically, Section 232 investigations have interpreted national security mainly in terms of critical defense or security concerns, such as the capacity and need of defense-related production. However, the Trump Administration appears to have significantly broadened this interpretation, shifting the focus toward economic threats such as the impact of foreign competition on domestic industries, unemployment, and loss of revenues.

If a national security threat is found, the president has 90 days to decide whether to act. If action is taken, the president must inform Congress within 30 days and implement any action within 15 days. However, the president is not bound by Commerce’s recommendations and may choose alternative actions or none at all.

232 Investigations and China

It is critical to consider the recently initiated Section 232 investigations against the backdrop of the tense trade war between the United States and China. Earlier this year, both nations imposed tariffs against the imports of the other that reached up to 145% (not including the Section 301 tariffs on China that had been imposed prior to the current Trump Administration). The US tariffs, imposed pursuant to the International Emergency Economic Powers Act, are currently being challenged in court. The Section 232 investigations are under a different statute and not covered by the ongoing court challenge. Given the tensions with China, critical minerals investigations will likely put heavy weight on the fact that China completely dominates production and refinement of these minerals, controlling nearly 70% of production and 90% of the refinement of rare earth minerals. This chokehold of the supply chain by one of the nation’s largest competitors may tip the scale in favor of finding a threat to national security in the critical mineral investigation.

Looking Ahead

The findings from the copper investigation are expected to be made public soon. In the meantime, President Trump’s announcement has already caused the price of US copper futures to hit a record high. The copper mining industry and upstream users of copper should begin preparing for increased prices.

The findings from the critical minerals investigation are due by October 22, although the report may be released earlier.

Meanwhile, the G7 recently released a “Critical Minerals Action Plan,” emphasizing the need for collaboration among member states to strengthen critical mineral supply chains and invest in emerging markets. It remains to be seen how the United States will reconcile the Section 232 investigations with its stated commitment to work closely with G7 partners on critical minerals. 

Additional research and writing from Summer Harris and Julia Cofiño, 2025 summer associates in ArentFox Schiff’s San Francisco, California office.