The United States’ proposed 50% import tariff on copper is facing potential rollback, particularly amid concerns that it would impact a broad range of semi-finished products, according to analysts from BMI Research, a unit of Fitch Group. The tariff plan, spearheaded by former President Donald Trump, aims to bolster the domestic copper supply chain but may end up raising costs across critical sectors of the U.S. economy.
Tariff Scope May Include Semi-Finished Products
Sources familiar with the matter told Bloomberg that the proposed tariffs would extend beyond refined copper to include semi-finished products such as wire, sheets, pipes, and plates—materials widely used in power grids, military applications, and data centers.
While a tariff on refined copper had been widely anticipated, the inclusion of semi-finished products raises concerns that the measures could sharply increase costs for industries that heavily rely on copper. These include sectors ranging from consumer electronics and automotive manufacturing to construction and defense.
The sources emphasized that the details of the tariffs remain unfinalized and could still change.
Economic Risks and Policy Reversal Expectations
Trump has positioned the copper tariff plan as part of a broader strategy to strengthen America’s domestic copper supply chain—from mining and refining to recycling and finished goods manufacturing. However, BMI Research suggests that the administration may ultimately pull back from the policy.
According to BMI analysts, the proposed 50% tariff is unlikely to significantly reduce U.S. reliance on copper imports but would exacerbate price pressures and undermine the competitiveness of American manufacturers. They also noted that Trump has a track record of retreating from aggressive tariff threats in the past.
If implemented as currently envisioned, the tariff could introduce inflationary pressures and disrupt supply chains, raising red flags for businesses already facing tight margins and logistical challenges.
Source: Bloomberght/ Prepared by: İlayda Gök