Investigation will culminate in a report that identifies vulnerabilities and offers recommendations
President Trump yesterday signed an executive order to initiate a Section 232 investigation under the Trade Expansion Act of 1962. The investigation aims to assess the national security risks associated with the United States' increasing reliance on imported copper.
According to a White House fact sheet (February 25, 2025), the investigation will evaluate the potential threats to national security and economic stability due to the United States’ dependence on non-U.S. copper, which is crucial for defense, infrastructure, and emerging technologies. Despite having significant copper reserves, the United States lacks sufficient smelting and refining capacity. The United States has seen its copper import reliance grow from nearly 0% in 1991 to 45% in 2024, raising concerns about supply chain vulnerabilities.
The investigation will culminate in a report that identifies vulnerabilities in the copper supply chain and offers recommendations to bolster the resilience of the U.S. copper industry.
KPMG observation
This investigation could potentially lead to an expansion of the metal tariffs already in place on steel and aluminum. Read TradeNewsFlash