US Imposes 50% Tariff on Copper Imports

The United States has announced a significant 50% tariff on semi-finished copper and copper-based imports, effective from August 1, 2025. This decision, outlined in a White House executive order, aims to reduce foreign copper reliance, deemed a risk to national security.

Impact on India's Copper Exports

India's copper product exports to the US, valued at $360 million in FY2025, may face increased costs. However, the uniform application of tariffs ensures no specific disadvantage for India compared to other global suppliers.

Global and Domestic Reactions

The tariff affects all countries, including allies like Japan and the EU, promoting equality among suppliers. Domestically, the move is seen as a step to protect vital sectors such as defense, clean energy, and infrastructure, where copper is indispensable.

India's Copper Trade Dynamics

India, primarily a copper importer, sourced $14.45 billion worth in 2024-25 from countries like Chile, Indonesia, and Australia. The new US tariffs may also impact India's copper scrap imports from the US, valued at $288 million.