US Imposes 50% Tariff on Copper Imports Citing National Security Concerns

Strategic Insights -

Following an investigation by the Secretary of Commerce, the US President has proclaimed that imports of copper, including semi-finished copper products and derivatives, threaten to impair US national security. The Commerce Department found a decline in domestic production and a dependence on foreign sources, leading to a 50% tariff on the copper content of these imported goods. The measure aims to bolster the domestic copper industry, secure critical infrastructure and defense systems, and reduce reliance on foreign imports.

Key Takeaways:

  • The US President has imposed a 50% tariff on all imports of semi-finished copper products and intensive copper derivative products, effective August 1, 2023.
  • The tariff will be phased, with a 15% universal tariff on refined copper on January 1, 2027, and a 30% universal tariff on January 1, 2028, contingent on the Commerce Department's report on the domestic copper industry.
  • A 25% domestic sales requirement for copper input materials will be implemented in 2027, and a 25% domestic sales requirement for high-quality copper scrap will be introduced.
  • Export controls for high-quality copper scrap will be implemented, with no specific date announced.
  • The Commerce Department will establish an inclusions process for copper derivatives within 90 days, by October 28, 2023.
  • The Section 232 copper tariffs will not stack on Section 232 auto tariffs, with only the auto tariff to be imposed.
  • No drawback will be available on tariffed copper articles.

Statistics:

  • 50% tariff on copper imports effective August 1, 2023
  • 15% universal tariff on refined copper on January 1, 2027
  • 30% universal tariff on refined copper on January 1, 2028
  • 25% domestic sales requirement for copper input materials in 2027
  • 25% domestic sales requirement for high-quality copper scrap
  • No specific date announced for export controls on high-quality copper scrap

Sources:

  • Recreation Vehicle Industry Association
  • Proclamation by the US President, Commerce Department
  • Federal Register notice ( Annex to be published)