Background on Copper and its Importance
Copper is a crucial metal used in the manufacturing of electrical cables, electronic components, plumbing systems, heating and cooling systems, construction, and the automotive industry. Its high electrical and thermal conductivity makes it indispensable for various industrial applications.
In 2024, Mexico was the third-largest external supplier of copper and related products to the U.S. market, with shipments totaling $976 million, trailing behind Chile ($6.117 billion) and Canada ($3.994 billion), according to the U.S. Department of Commerce data.
The United States is the second-largest importer of copper globally, with $17.11 billion spent on imports in 2024, just behind China’s $72.79 billion.
Trump’s Announcement and its Potential Impact
President Donald Trump announced a 50% tariff on imported copper, citing national security concerns. This move could potentially impact Mexican exports to the U.S. by approximately $1 billion annually.
Mexico’s Secretary of Economy, Marcelo Ebrard, responded to the announcement by stating that they would first gather more details and then provide a precise position. He emphasized the need to understand which products would be affected.
Section 232 of the Trade Expansion Act of 1962 allows the President to impose restrictions, such as tariffs, on imports deemed to threaten U.S. national security by the Secretary of Commerce.
Trump has previously used Section 232 to impose tariffs on U.S. imports of steel, aluminum, automobiles, and auto parts in 2018 and 2019. He may consider similar measures for ongoing investigations into lumber, semiconductors, pharmaceuticals, critical minerals, trucks, and aircraft.
Between January and May 2025, U.S. imports of copper and related products surged by 73%, reaching $10.44 billion, likely due to businesses anticipating shipments to the U.S. market to avoid additional costs from tariffs.
During the same period, Mexico’s copper exports to the U.S. grew by 12%, totaling $419 million, placing it sixth among major exporters.
Meanwhile, exports from Germany increased by 58%, Chile’s rose by 117%, and Peru’s grew by 66%. Canadian exports rose only 1%, while the Democratic Republic of Congo’s exports skyrocketed from $26 million to $606 million.
Threat to BRICS
Trump also announced that a 10% tariff would soon be imposed on BRICS countries. He stated, “Anyone who is part of the BRICS will receive a 10% tariff very soon.”
Trump plans to reveal the tariff rate for imports from the European Union within a couple of days. He mentioned that the EU has treated the U.S. well in recent trade talks.
Trump also hinted at announcing tariffs on imported semiconductors and pharmaceuticals, anticipating that the drug tariff could reach 200%. He stated that companies would be given a year to adjust.
Key Questions and Answers
- What is the potential impact on Mexico? The proposed 50% tariffs could negatively affect Mexican copper exports to the U.S., potentially reducing their value by approximately $1 billion annually.
- What is copper used for? Copper is essential in manufacturing electrical cables, electronic components, plumbing systems, heating and cooling systems, construction materials, and automotive parts due to its high electrical and thermal conductivity.
- What is Section 232 of the Trade Expansion Act? This section allows the U.S. President to impose tariffs or restrictions on imports deemed a threat to national security by the Secretary of Commerce.
- What other products might face tariffs? Trump is considering tariffs on lumber, semiconductors, pharmaceuticals, critical minerals, trucks, and aircraft following ongoing investigations.
- What is the BRICS tariff announcement? Trump stated that a 10% tariff would soon be imposed on countries part of the BRICS group.
- What is the timeline for tariff implementation? Trump plans to announce tariffs on semiconductors and pharmaceuticals, giving companies about a year to adjust.
