Trump orders investigation into US supply chain risks for copper
US president Donald Trump signed an executive order launching an investigation into how copper imports threaten America’s national security and economic stability.
Without suggesting that new tariffs are coming, the president expressed concerns that an over-reliance on foreign copper in all its forms could jeopardise US defence capabilities, infrastructure development and technological innovation.
Mr Trump’s influence has already had a significant impact on copper markets, creating a record gap between US and global prices.
Identification of vulnerabilities
The new probe will culminate in a report identifying vulnerabilities in the copper supply chain and providing recommendations to enhance the resilience of America’s domestic copper industry.
In signing the executive order, the US president noted that copper is the second-most utilised material by the Department of Defense.
He also highlighted that, despite possessing ample copper reserves, America’s smelting and refining capacity ranks outside the top five nations.
This places it behind global competitors including China, which controls over 50% of global smelting.
Surging copper imports
US reliance on copper imports has surged from virtually nil in 1991 to 45% of consumption in 2024, heightening risks to supply chain security.
The president also raised concerns that foreign overcapacity in smelting and refining, coupled with potential export restrictions from other nations, threatens to disrupt copper availability for US defence and industry needs.
While no single nation was identified, reports suggest the order will focus on competition from China.
Stronger trade policy
The executive order adds to previous actions the current administration has taken to strengthening US trade policy.
Mr Trump has already created market disruptions with threats to restore a 25% tariff on steel and elevate the tariff to 25% on aluminium.
He has also implemented a 10% additional tariff on imports from China in response to its role in the border crisis.