Introduction
US President Donald Trump announced plans to impose a 50% tariff on copper imports, surprising the global industry crucial for electric vehicles, military equipment, semiconductors, and various consumer goods. This move aims to boost domestic copper production in the United States.
Current US Copper Production and Imports
The United States produces more than half of the refined copper it consumes annually. Over two-thirds are extracted from Arizona, where a massive new mine development has been stalled for over a decade. The remaining refined copper, approximately 900,000 metric tons per year, is imported.
Although the White House frames the new tariffs as a countermeasure against China’s dominance in the global copper market, the US imports most of its refined copper from the Americas.
- Chile, Canada, and Peru accounted for over 90% of US copper refined imports in the past year, according to the United States Geological Survey (USGS).
Global Copper Production
China leads the world in refined copper production, but most of the copper ore fueling its smelters is extracted elsewhere, primarily in Latin America. Chile and Peru together produced approximately one-third of the world’s copper last year, as reported by the USGS.
However, China is expanding its control over global copper mining through significant investments in mines in the Democratic Republic of Congo (DRC).
- The DRC is now the world’s second-largest copper producer, surpassing Peru, largely due to China’s massive investment in the country’s mining sector.
China’s smelting sector dwarfs all others. The country operates dozens of copper smelters, while the US has only two primary copper smelters, according to the USGS.
Key Questions and Answers
- Q: What percentage of US refined copper is imported? Approximately 40% of the refined copper consumed in the US is imported.
- Q: Which countries supply most of the US copper imports? Chile, Canada, and Peru accounted for over 90% of US copper refined imports in the past year.
- Q: How much of the world’s copper production does China lead? China dominates refined copper production, though most copper ore comes from Latin America.
- Q: How has China expanded its influence in global copper mining? China has invested heavily in mines in the Democratic Republic of Congo, making it the world’s second-largest copper producer.
