The move seeks to ‘address the Government of Brazil’s unusual and extraordinary policies and actions harming U.S. companies,’ the White House said.
WASHINGTON—The White House announced on July 30 that the United States would impose 50 percent tariffs on imports of semi-finished copper products and intensive copper derivatives effective on Aug. 1. The move exempts refined metals from the new tariffs.
U.S. copper prices fell sharply after President Donald Trump exempted refined materials from the new tariffs.
The new tariffs target semi-finished products such as copper pipes, wires, rods, sheets, and tubes, and copper-intensive derivative products such as pipe fittings, cables, connectors, and electrical components, according to the White House.
In February, Trump signed an executive order directing the Department of Commerce to address threats to national security and economic stability from copper imports.
He urged domestic companies to ramp up their production of the red metal. Copper prices advanced since then.
The United States is one of the world’s top copper miners, producing about 1.1 million tons annually. Chile remains the largest producer, with 5.3 million tons, followed by the Democratic Republic of the Congo (2.84 million tons), Peru (2.76 million tons), and China (1.83 million tons).
The United States consumes about twice as much copper as it produces, so depends on imports, mainly from Chile.
Copper is a crucial component for electric vehicles and renewable energy sources. Additionally, it will be a vital source for advancing the president’s economic agenda, particularly in artificial intelligence (AI), data centers, robotics, and semiconductors.
In another move, Trump also signed an executive order implementing an additional 40 percent tariff on imports from Brazil, bringing the total tariff amount to 50 percent.
The move seeks to “address the Government of Brazil’s unusual and extraordinary policies and actions harming U.S. companies, the free speech rights of U.S. persons, U.S. foreign policy, and the U.S. economy,” according to a White House fact sheet.
The order also seeks to hold the Brazilian government accountable for serious human rights abuses, including the political persecution of former President Jair Bolsonaro and his supporters, which have undermined the rule of law in Brazil, according to the White House.
By Emel Akan
