01 August 2025 US imposes tariffs on copper products
On 30 July 2025, United States (US) President Donald Trump signed a Proclamation titled "Adjusting Imports of Copper into the United States," which imposes 50% tariffs, effective 1 August 2025, on imports of semi-finished copper products and copper-intensive derivative products. The Proclamation is aimed at addressing the implications of copper imports on national security, following a Section 232 investigation under the Trade Expansion Act of 1962. (For background, see EY Global Tax Alert, US initiates investigation into imports of copper, scrap copper and copper derivatives, dated 26 February 2025.) The Proclamation imposes 50% tariffs on several categories of copper imports. Specifically, it covers semi-finished copper products, which include items such as copper pipes, wires, rods, sheets and tubes. Additionally, the tariffs apply to copper-intensive derivative products, including pipe fittings, cables, connectors and electrical components. Certain products are excluded from these tariffs. Copper input materials, such as copper ores, concentrates, mattes, cathodes and anodes, are not subject to the tariffs. Copper scrap is also exempt. The Proclamation clarifies that the tariffs on copper apply specifically to the copper content of a product, while any non-copper content remains subject to existing tariffs or other applicable duties. The Secretary of Commerce is tasked with establishing a process to include additional copper derivative products within the scope of the tariffs. This process will be developed within 90 days of the Proclamation's issuance. The Proclamation instructs the Secretary of Commerce to take appropriate action to phase in a new "domestic sales requirement" for copper input materials, which would start at 25% in 2027. A domestic sales requirement of 25% would also apply for high-quality copper scrap. The Proclamation specifies that the United States intends to coordinate with the United Kingdom (UK) in addressing the national security threat in the copper sector under the US-UK Economic Prosperity Deal (EPD). (For background, see EY Global Tax Alert, US and UK unveil trade deal, dated 9 May 2025.)
Document ID: 2025-1634 | ||||||