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| Copper tariff |
The proposed copper tariff by President Donald Trump has drawn support from billionaire miner Robert Friedland. He considers it a necessary move to revive the US copper industry. The tariff, set to begin August 1, has already triggered a surge in copper imports and raised concerns about domestic supply sufficiency.
Tariff Sparks Import Rush, But Infrastructure Lags Behind
In anticipation of the copper tariff, US importers brought in 461,000 tonnes of copper between January and April 2025. This figure is up 232,000 tonnes from 2024 and 148,000 tonnes from 2023. As a result, copper prices in the US spiked. However, prices may soften in global markets as exporters like Chile divert shipments elsewhere.
Meanwhile, analysts warn that the US lacks sufficient mining, smelting, and refining capacity. According to Jefferies LLC, the copper tariff will likely create a significant price premium in the US compared to other regions.
Domestic Mining Projects Face Long Permitting Delays
The Trump administration has accelerated permitting, shortening approval times from years to weeks. However, building a copper mine still takes an average of 29 years. This places the US just behind Zambia in global project timelines, according to S&P Global.
Major domestic projects like Rio Tinto’s Resolution, Pebble, and Twin Metals remain stalled. In contrast, Friedland’s Ivanhoe Electric aims to fast-track the Santa Cruz mine in Arizona, positioning it as a strategic national asset.
ScrapInsight Commentary
The copper tariff underscores rising geopolitical concerns over resource independence. While it may boost domestic pricing short term, the lack of infrastructure remains a critical bottleneck. Policymakers must balance protectionism with practical timelines for mine development to ensure long-term copper security.
