Copper is used extensively in the electronic goods sector from transformers to radios and TVs but is also a critical component in wiring, alternators, radiators, industrial machinery, and electrical motors. 

The U.S. produces about half of the refined copper it consumes each year. The rest is imported primarily from Canada, Mexico, Chile, and Peru. In addition, in 2024 the U.S. imported more than $507 billion in copper products from China including copper tubes/pipe fittings, plates, sheets, wires, and other products.

Because copper is a key component in many different manufacturing applications, any market disruptions or distortions could have an impact on a company’s processes, pricing, and supply chain. 

On February 25, 2025, President Trump signed an executive order (EO) titled, “Addressing the Threats to National Security from Imports of Copper.” The White House also issued a Fact Sheet on the issue. The EO directs the Secretary of Commerce to initiate an investigation “under section 232 of the Trade Expansion Act to determine whether imports of copper, scrap copper, and copper’s derivative products threaten to impair national security.” 

The secretary is directed to consult with other departments, and to submit a report of his findings to the president within 270 days. Under the standard process for Section 232 investigations, the president will have 90 days to review the secretary’s report and determine whether he will take any action to adjust the import of these products.

The EO specifies that the secretary is to investigate the effects on natural security of the imports of copper in all forms, including but not limited to:

• Raw mined copper
• Copper concentrates
• Refined copper
• Copper alloys
• Scrap copper
• Derivative products.

The secretary is also directed to examine several trade-related issues, including but not limited to those related to: 

• Current and projected demand
• Domestic capacity and potential capacity
• Foreign government subsidies, including dumping and state-sponsored overproduction
• The ability of foreign governments to weaponize control over refined copper supplies through export restrictions
• Risks associated with the concentration of U.S. copper imports from a small number of suppliers

The Fact Sheet notes the crucial role that copper plays in defense applications, infrastructure, and emerging technologies. It also notes that U.S. imports of copper have risen from zero in 1991 to 45% of consumption in 2024, that China controls over 50% of global smelting, and that the U.S. isn’t even in the top five nations for smelting capacity.

The implementing notice from the secretary’s office should be released in the near future with details on scoping, interagency coordination, comment due dates, etc.