President Trump on Tuesday signed an executive order opening an investigation into whether foreign production and imports of copper threatens America’s economic and national security.
The directive orders Commerce Secretary Howard Lutnick to lead the probe and determine whether new tariffs on foreign copper are warranted.
“Copper is a critical material that is used in manufacturing and construction but also has applications in the U.S. military because it is used to build ships, tanks and aircrafts. It is also used in electric vehicles and artificial intelligence,” the order stated.
The potential tariffs would help the U.S. copper industry, which the White House says is being undermined by foreign competition and unfair trade practices. Roughly 38% of the copper used in the U.S. is imported from foreign countries, according to data from BNP Paribas, a financial services company. The U.S. consumed about $17 billion of copper last year, according to data from Citi.
The order invokes Section 232 of the Trade Expansion Act, which authorizes the president to impose tariffs on foreign products in the interest of national security. Mr. Lutnick has 270 days to present his investigative findings to the president.
Mr. Trump has threatened to impose tariffs on several imports, including steel, aluminum, automobiles and pharmaceuticals. He was going to impose 25% tariffs on Canada and Mexico, saying the two countries need to do more to stop the flow of drugs and migrants in the U.S. He paused those tariffs for a month, but said this week they would start on March 4.
He also imposed an additional 10% tariff on all products from China and proposed reciprocal tariffs, which would match the tariff levels other countries levy against the U.S.
In addition, Mr. Trump imposed a 10% tariff on all production from China, which was swiftly met with retaliatory tariffs from Beijing.
Copper prices have risen since Mr. Trump returned to the White House ahead of expected tariffs. On Inauguration Day, copper was trading at roughly $4.26 per pound, but on Tuesday it was trading at $4.49 per pound, according to data from Daily Metal Prices.
• Jeff Mordock can be reached at jmordock@washingtontimes.com.