In Beijing on February 26, Reuters reported that the U.S. President is exploring potential tariffs on copper imports to enhance domestic production of this crucial metal used in electric vehicles, military equipment, semiconductors, and various consumer goods.
An official from the White House disclosed that the inquiry will scrutinize imports of raw mined copper, copper concentrates, copper alloy, scrap copper, and related derivative products. A prompt outcome is anticipated.
Here are essential details regarding U.S. copper imports:
The United States domestically produces slightly more than half of the refined copper it consumes yearly. Over two-thirds of this production originates from Arizona, where a project has faced delays for over a decade. The remaining refined copper, close to 1 million metric tons annually, is brought in through imports.
While the White House presents the proposed tariffs as a response to China's market dominance, the United States primarily sources its refined copper from the Americas.
Last year, Chile, Canada, and Peru contributed to over 90% of U.S. refined copper imports, according to the United States Geological Survey (USGS).
Although China holds a significant share in global copper refining, the ores feeding its smelters are mainly sourced from other regions, notably Latin America. Chile and Peru collectively mined about a third of global copper output last year, as per the USGS.
Despite its global copper refining dominance, China continues to expand its participation in copper mining worldwide by investing heavily in mines in the Democratic Republic of the Congo (DRC).
The DRC has become the world's second-largest copper producer, surpassing Peru, largely due to significant Chinese investments in the African nation's mining sector.
China's copper smelting capacity considerably exceeds that of other countries, as witnessed by numerous active copper smelters in the country last year. In contrast, the United States, according to the USGS, only operates two primary copper smelters.