- The Trump administration has not finalized new tariffs on refined copper yet
- White House worries that tariffs could raise costs for US manufacturers and consumers
- Copper prices have hit record highs amid tariff extension expectations and stockpiling
The Trump administration has not yet decided whether to impose new tariffs on refined copper, as officials weigh the benefits of boosting domestic mining against the risk of higher costs for US manufacturers and consumers, according to a report.
The White House remains concerned that higher copper prices could increase manufacturing costs. The issue has gained importance as President Donald Trump and Republican lawmakers focus on affordability ahead of the November midterm elections, Reuters reported.
Copper prices have surged to record highs on expectations that the US could extend tariffs to refined products such as copper cathode and copper concentrate.
Traders and industrial buyers have also increased US inventories to get ahead of potential duties.
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A White House official confirmed that no final decision has been made. The Commerce Department submitted an update on copper markets to Trump by the June 30 deadline. “The administration continues to evaluate all options to reshore copper and other critical manufacturing back to the United States,” the official said.
The US imports around half of its copper requirements each year and has only two operational copper smelters, owned by Freeport-McMoRan and Rio Tinto.
US refined copper imports have risen sharply since 2015, while domestic production has declined, according to US Geological Survey data.
Trump has backed projects including the Resolution Copper project in Arizona and Twin Metals in Minnesota to strengthen domestic supply.
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However, tariffs could increase costs for industries that rely heavily on copper, including construction, automobiles, electronics and electrical equipment. S&P Global expects AI and defence growth to push global copper demand 50% higher by 2040.
Trump had earlier asked Commerce Secretary Howard Lutnick to assess whether the US should impose a 15% copper tariff from January 2027, rising to 30% in 2028.
The unresolved policy is also disrupting global supplies, as more copper remains stored in the US instead of returning to international markets. Trump has separately moved to restrict electronic waste exports, another potential source of copper.
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