On July 30, 2025, President Trump issued a proclamation imposing a global 50 per cent tariff on certain copper products. As Canada is a major producer of copper and exporter of copper products to the US, these tariffs may have a major impact on Canadian producers.
We discuss the new copper tariffs and their implications for Canada's copper industry below.
The Copper Tariffs
On July 30, 2025, President Trump issued a proclamation (Adjusting Imports Of Copper Into The United States) imposing, as of August 1, global 50 per cent tariffs on imports of semi-finished copper products (e.g., copper pipes, wires, rods, sheets, and tubes) and copper-intensive derivative products (e.g., pipe fittings, cables, connectors, and electrical components). USMCA-compliant exports of covered copper items are still subject to these tariffs. These tariffs apply to the copper content of a product, while the non-copper content of a product remains subject to tariffs previously imposed on Canadian-origin goods in March 2025.
The Proclamation also directs the Secretary of Commerce to establish a product "inclusion" process within 90 days after the date of the Proclamation to add copper derivative products to these tariffs, indicating that they will likely be expanded to cover additional products in the near future.
The tariffs are being imposed under Section 232 of the Trade Expansion Act of 1962 further to the national security investigation of copper imports ordered by President Trump on February 25, 2025. As such, the copper tariffs will not be impacted by any legal proceedings challenging tariffs imposed under the International Emergency Economic Powers Act (including the March 2025 tariffs noted above).
Other Measures to Support the US Copper Industry
In addition to the imposition of tariffs on copper products, President Trump directed the Secretary of Commerce to take steps under the US Defense Production Act of 1950 to bolster the US domestic copper industry, by requiring that:
- 25 per cent of high-quality copper scrap produced in the US to be sold in the US, and
- Beginning in 2027, 25 per cent of copper input materials (such as copper ores, concentrates, mattes, cathodes, and anodes) produced in the US will be sold in the US, increasing to 30 per cent in 2028 and 40 per cent in 2029.
These steps are intended to improve access to copper for domestic US fabricators and secondary refiners while boosting US refining capacity.
Implications for Canada's Copper Industry
The US is the largest buyer of Canadian copper and copper-based products, purchasing over half of all Canadian exports. However, tariffs have not, as of yet, been imposed on key Canadian exports, including copper concentrate, anodes, cathodes, and semi-processed materials. Tariffs, likewise, do not apply to copper scrap.
Although the copper tariffs were not as expansive as originally feared, they are still likely to have significant impacts on Canadian industry, and further expansion is clearly contemplated. The tariffs, therefore, have potentially significant implications for Canada's copper industry, particularly in Ontario, a major producer of copper, exported to the US, and Quebec, which is home to Canada's sole copper smelting facility and a major copper refinery.
Canadian industry will therefore have to prepare for these tariffs by continuing to diversify markets if possible, reviewing contracts to shift or share the additional tariffs with US buyers, continuing to ensure USMCA compliance to avoid any IEEPA tariffs imposed on the non-copper content of products, and engaging with the Canadian government on developing measures to support Canadian industry.
Fasken is closely monitoring developments, including whether or how Canada will respond to these tariffs, and will report on significant developments in due course.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
