(Bloomberg) -- Major players in the US copper industry have called on President Donald Trump to restrict exports of ore and scrap metal rather than imposing tariffs on imports, in his efforts to boost domestic production.
Most Read from Bloomberg
Trump’s executive order in February ordering an investigation into possible copper tariffs has upended the global market, driving US prices to a huge premium to international benchmarks and spurring a global race to get copper into the country before any potential tariffs are imposed.
The order called on the secretary of commerce to make recommendations on actions “including potential tariffs, export controls, or incentives to increase domestic production.”
In public comments in response to the US government’s section 232 investigation on copper, leading companies including miner Rio Tinto Group, fabricator Southwire Co. and trader Trafigura Group suggested that the administration should instead impose restrictions on exports of copper rather than tariffs on imports.
“The Trump administration should consider implementing export restrictions on domestically produced copper concentrate and copper scrap,” wrote Rio Tinto.
Southwire, which is the US’s largest manufacturer of copper wire, said: “The administration should focus on regulatory reform and restrictions on US copper exports as the primary tools to grow the US industry.”
Significant Importer
The US is the world’s largest exporter of copper scrap and also an exporter of copper ore, known as concentrates. However, a lack of sufficient domestic processing capacity means it is also a significant importer of refined copper metal.
While several responses called for the US to impose restrictions on exports of copper scrap, and in some cases copper concentrates, many urged the administration not to place import tariffs on copper metal.
The Copper Development Association, the trade association for the US copper industry, called for exemptions from import tariffs for raw materials “including refined copper cathodes and scrap copper.”
Trafigura, the world’s largest copper trader, argued that import tariffs should be imposed on manufactured copper products like wire rod, tube and strip, but that the administration should “keep refined copper imports free from tariffs for now, until new mining and smelting capacity has been constructed.”
US copper miner Freeport-McMoRan Inc. didn’t make any direct recommendation about tariffs, but argued the US should support free trade.
“In 2024, the US imported approximately 50% of its copper cathode demand from Chile, Canada, Peru and other countries, which is necessary to meet current demand because there is no US latent production capacity,” the miner wrote. “Promoting free and fair trade with US allies will ensure US copper supply requirements are satisfied.”
The responses included a panoply of other suggestions for boosting the US copper industry, including introducing tax credits, streamlining the permitting process for new mines, and imposing tariffs on imports of semi-fabricated products containing copper.
Several respondents highlighted the challenge of incentivising investments into new US smelting capacity. There are only three copper smelters in the US, and one of them is the mothballed Hayden plant. In its submission, Asarco LLC, which owns the Hayden plant, asked for emissions testing requirements to be relaxed in order to allow it to reopen.
--With assistance from Joe Deaux, Yvonne Yue Li, James Attwood and Jennifer A. Dlouhy.
Most Read from Bloomberg Businessweek
©2025 Bloomberg L.P.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.