Trump Orders "232 Investigation" into Copper! Which Countries Will Face Major Impact?

TradingKey — Trump has ordered an investigation into copper, which may lead to tariffs on copper imports, putting pressure on Canada, Mexico, and Chile.

On Tuesday, February 25, Eastern Time, President Trump signed an executive order directing the Secretary of Commerce to initiate a Section 232 investigation into copper. This move could result in tariffs on copper imports.

The "232 investigation" refers to Section 232 of the Trade Expansion Act of 1962, which allows the Department of Commerce to investigate whether the importation of specific products poses a threat to national security. Copper is a critical raw material needed for the development of industries such as electric vehicles, military equipment, and semiconductors. However, the U.S. lacks sufficient domestic production and relies on imports to meet its demand.

U.S. Secretary of Commerce Wilbur Ross stated in a press release that American industry and defense depend on copper. He emphasized, "Copper should be made in America—no exemptions, no exceptions. It's time to bring copper back."

The investigation into copper by the U.S. is primarily aimed at imposing tariffs. The White House believes that tariffs on copper will help rebuild America's copper production capacity. White House officials have also candidly stated that Trump prefers tariffs over quotas when implementing trade protection measures.

According to data from the U.S. Census Bureau, the largest suppliers of refined copper and copper products to the U.S. in 2024 are Canada, Mexico, and Chile. Recently, Trump ordered a 25% tariff on imports from Mexico and Canada, which is set to take effect on March 4.