Trump’s copper tariffs expected to include key products for power grids and data centers

Donald Trump’s planned 50% copper import tariffs are set to cover semi-finished products used in US power grids, data centers, and the military, raising costs and risking supply chain disruptions.

Former US President Donald Trump’s proposed 50% tariffs on copper imports are expected to extend beyond refined metal, targeting critical semi-finished products used in power grids, data centers, and military infrastructure, according to sources familiar with the matter.

Although the tariffs have not yet been officially confirmed and may still be revised, insiders report that the plan is likely to include copper wires, sheets, tubes, and plates — components essential to the functioning of a wide range of industries.

Markets responded swiftly to the news. Copper futures on the COMEX in New York rose as much as 1.3% during early trading in Asia on Friday, as traders priced in the wider impact of the levies.

Strategic reach of the tariffs

Trump’s tariff strategy, scheduled to begin August 1, is framed as a push to strengthen the domestic copper supply chain — from mining and refining to fabrication and end-product manufacturing. However, the decision could have far-reaching effects on American industries reliant on imported copper components.

While refined copper imports — which make up the bulk of US copper trade at 908,000 metric tons in 2024 — were already expected to face the new tariffs, the inclusion of semi-finished products would further elevate costs for US manufacturers.

These semi-finished materials, classified as “semi-products,” are used extensively in high-tech sectors, including data centers, electric infrastructure, defense, and telecommunications. Industry analysts warn that such a move could strain domestic capacity and raise the risk of supply disruptions.

Fabricators sound the alarm

Southwire Co., North America’s largest copper fabricator and a key supplier to US naval and military installations, declined to comment on the possible impact. However, the Copper Development Association, in a March 31 submission to the US Department of Commerce, highlighted the strategic importance of semi-products in the military-industrial complex, representing the views of 90% of the nation’s copper semi-producers.

Domestic copper production remains insufficient to meet the country's needs. According to consultancy MM Markets, the US imported around 800,000 tons of copper and copper alloy semi-products in 2024 alone.

Krisztina Kalman, co-founder of MM Markets, cautioned that the proposed tariffs would expose the US to serious vulnerabilities in the power and data sectors. “Any disturbance in foreign supply of copper and semi-finished products could expose the US to significant issues in delivering electricity,” she warned.

Kalman added that US wire rod mills and fabricators currently lack the capacity to offset such a shortfall. “Local fabricators will not be able to produce 800,000 tons more semi-products with current capacity, and it could take up to seven years to install new capacity,” she said.

What’s next?

As the Biden administration and key stakeholders await official policy announcements, industry players are bracing for price volatility and operational challenges. With copper deeply embedded in everything from consumer electronics to critical infrastructure, the broader economic impact of Trump’s copper tariffs could be both deep and far-reaching.