The price of %Copper is down 2% after U.S. President Donald Trump ordered an investigation into copper imports in what he says is a first step towards potential tariffs on the industrial metal.
U.S. officials have said they are looking at ways to boost U.S. production of copper, a metal that is widely used to make electric vehicles, solar panels, and data centres, among other products.
The investigation of copper follows a similar process the Trump administration used to place tariffs on steel and aluminium imports.
Trump has already raised tariffs on goods from China by as much as 20% and continues to threaten tariffs of as much as 25% on goods imported from Canada and Mexico.
The trade fights have drawn threats of retaliation from foreign countries, raised alarm among consumers, and hurt sentiment on Wall Street, sending stock prices lower.
However, the White House has said tariffs on copper might be necessary to protect America from rising competition in China.
U.S. Commerce Secretary Howard Lutnick recently said, “It’s time for copper to come home.”
Tariffs are taxes charged on goods imported from other countries, which are paid by the company that is bringing in the goods.
Tariffs are intended to support domestic production by making imports of foreign products more expensive to buy, pushing consumers and businesses to buy domestic.
However, most often, the increased costs get passed onto consumers through higher prices, which economists warn could spark a rise in inflation.
The U.S. is already a major copper producer, and most imports of the metal come from Chile not China.
The new investigation by the U.S. Commerce Department will look at copper imports, as well as imports of copper derivatives, according to a statement from the White House.
The timeline of the probe is not clear and nor is the level of any possible tariffs that might be placed on U.S. imports of the industrial metal.
Copper is currently trading at $4.54 U.S. per pound, having risen 13% so far in 2025.
