President Donald Trump recently signed an executive order directing the government to explore the potential imposition of tariffs on copper imports, as part of the administration’s efforts to reshape global trade. The move, highlighted by White House trade adviser Peter Navarro, aims to curb China’s dominance in the copper sector and address national security vulnerabilities. Trump’s trade agenda, focused on reducing trade deficits, sees copper imports as a national security risk due to forecasts of supply and demand.

In 2019, the U.S. exported $11.3 billion of copper while importing $9.6 billion, showcasing a trade surplus in copper. The Federal Reserve’s index of copper mining has declined by over 30% since its peak in 1998. Trump has also eliminated exemptions on steel and aluminum tariffs, with plans to impose 25% tariffs on all imports from Mexico and Canada, including a 10% tax on Canadian energy products.

Furthermore, the president has pledged additional tariffs to match rates charged by other countries, targeting sectors such as autos, computer chips, and pharmaceutical drugs. While concerns about the broader economic impact of these tariffs persist, the relatively small role of copper in trade suggests that it alone is unlikely to significantly contribute to inflationary pressures. Trump’s tariff strategy encompasses a wide range of imports, raising questions about potential price increases and the overall economic outlook.