Section 232 Investigation Ends with 50% Duties on Copper
On Tuesday, July 8, President Trump told reporters that he would soon announce a 50% tariff on copper—the result of a Section 232 Investigation into U.S. copper imports that began in February. Late Wednesday evening, the President specified that the increased tariff rate would be effective August 1. On Thursday, Bloomberg News reported that the rate would also apply to semi-finished products.
The initial statement from President Trump came during a cabinet meeting at the White House, during which he stated that the duties were designed to boost U.S. copper production. U.S. mining of the metal, which is crucial in the production of electric vehicles, military hardware, consumer goods, and components of the power grid, covers about half of the country’s copper needs each year—primarily in Arizona.
When the Section 232 investigation was announced in the spring, White House officials indicated that the move was a response to increasing dominance by China in the global copper market—White House trade adviser Peter Navarro stated at the time that China was using undue economic influence and state investment to establish a dominant position in global copper production. However, the vast majority of refined copper imports into the U.S. come from Chile, which along with Canada and Peru accounted for more than 90% of imports last year. The Democratic Republic of the Congo (DRC)—where China has made major investments in the mining industry—and Mexico round out the top 5.
Chilean President Gabriel Boric declined on Wednesday to make definitive statements on the promised tariffs, stating that he was still waiting for any “official communication” from the United States as to the scope and details of the policy. Mexican President Claudia Sheinbaum, meanwhile, raised the possibility that the country could redirect copper exports to other countries in order to avoid the increased duties. Despite being two of the top copper suppliers to the U.S., both countries currently export the majority of their copper to China.
President Trump Signals Pharmaceutical, Semiconductor Tariffs in Coming Weeks
During the same cabinet meeting on Tuesday, President Trump also gave a preview of imminent potential tariffs on semiconductors and pharmaceuticals. 232 investigations into both industries were initiated on April 1, 2025. The President declined to provide details on the threatened semiconductor tariffs, but stated that pharmaceuticals would be tariffed at a “very, very high rate, like 200 percent.” Lutnick stated on Tuesday that both investigations would be completed “at the end of the month.”
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