The United States government has announced a new policy to address national security concerns related to copper imports. The country is heavily reliant on foreign sources for mined, smelted, and refined copper, despite having ample reserves domestically. A single foreign producer currently dominates the global market, controlling over 50% of smelting capacity and four of the top five largest refining facilities.
"The United States faces significant vulnerabilities in the copper supply chain," states the announcement. It highlights that this reliance poses a direct threat to national security and economic stability due to potential foreign market manipulation.
To counter these risks, an investigation under section 232 of the Trade Expansion Act will be initiated by the Secretary of Commerce. This investigation aims to determine whether imports of copper and its derivatives threaten national security. The assessment will cover various forms of copper, including raw mined copper, concentrates, refined copper, alloys, scrap copper, and derivative products.
The investigation will consider factors such as domestic production capabilities for defense and critical infrastructure sectors, foreign supply chain roles in meeting U.S. demand, concentration risks from a small number of suppliers, impacts from foreign subsidies and trade practices on U.S. industry competitiveness, and potential export restrictions by other nations.
Additionally, within 270 days from February 25th, 2025, the Secretary of Commerce is required to submit a report with findings on whether dependence on imports threatens national security. Recommendations may include tariffs or incentives to boost domestic production along with strategic investments and recycling initiatives.
This initiative underscores the importance placed by U.S. authorities on securing a reliable domestic supply chain for materials crucial to both economic strength and industrial resilience.
