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Investing.com-- U.S. President Donald Trump said on Tuesday that he was looking into imposing import tariffs on copper over allegedly unfair trade practices, and that production of the red metal should return to America.
Trump signed an executive order instructing the Secretary of Commerce and the United States Trade Representative to “study copper imports,” and to end “unfair trade,” which he claimed was robbing Americans of jobs.
“Tariffs will help build back our American Copper Industry, and strengthen our National Defense. American Industries depend on Copper, and it should be MADE IN AMERICA,” Trump said in a social media post.
“It’s time for Copper to ‘come home,’” Trump said.
The U.S. president noted in his executive order that the country faces “significant vulnerabilities” in the copper supply chain due to its reliance on foreign sources of mined, smelted, and refined copper.
Chile, Canada, and Mexico are the biggest suppliers of copper to the U.S., according to Census Bureau data. But the order appeared to be aimed at China, which is the world’s biggest copper refiner.
Government data showed the U.S. mined some 1.1 million metric tons of copper, a bulk of which was used domestically. Freeport-McMoRan (NYSE:FCX) and Rio Tinto (NYSE:RIO) currently operate the largest copper mines in the U.S.
The country also has three operating smelters, and is still a net exporter of copper ore and copper concentrate.
Trump had earlier in February imposed 25% import duties on steel and aluminum, claiming that the move was intended to boost domestic production of the metals.
The U.S. President also said earlier this week that his planned 25% tariffs on Canada and Mexico will likely take effect from next week.
The increased trade duties are all part of Trump’s broader agenda of using tariffs to limit U.S. reliance on imports and to boost domestic production of key commodities. But higher tariffs are expected to disrupt global trade, and could also draw retaliatory measures from other major economies.