White House Has Yet to Decide on Refined Copper Tariffs

U.S. officials are weighing the potential benefits of encouraging domestic copper production against the risk of higher manufacturing costs, leaving a tariff decision unresolved as copper markets react to months of uncertainty.

By Paul Ploumis
Published September 11, 2026

SEATTLE (Scrap Monster): The White House has not made a final decision on refined copper tariffs as officials weigh the benefits of encouraging more domestic mining against concerns that higher copper costs could feed through to U.S. manufacturers, according to two people familiar with the matter.

The administration is increasingly focused on affordability ahead of November's midterm elections, as President Donald Trump and Republican lawmakers face pressure to demonstrate that their economic policies are lowering rather than increasing costs for consumers and businesses.

Tariff Expectations Have Reshaped Copper Flows

Copper prices have climbed to record highs amid expectations that the administration could impose tariffs on refined copper products such as cathode, as well as copper concentrate produced at mine sites.

Traders and industrial buyers have built inventories in the United States ahead of any potential duties, creating one of the world's largest copper stockpiles.

A White House official said no final decision had been made and confirmed that the Commerce Department provided an update to Trump by a June 30 deadline established by the White House.

"The administration continues to evaluate all options to reshore copper and other critical manufacturing back to the United States," the official said.

The comments indicate that tariffs are not a foregone conclusion despite market expectations that the United States could extend existing duties to refined copper.

The administration has been considering refined-copper tariffs as part of Trump's broader effort to rebuild U.S. manufacturing and reduce dependence on foreign supplies of critical materials.

Copper and Mining Shares Fall After Report

Copper-related equities fell following the Reuters report. Freeport-McMoRan shares were down 7% in midday Thursday trading, Rio Tinto declined 2.7% and BHP fell 4.7%. Copper prices lost more than 4%.

Copper is widely used in construction, transportation, electronics and other industries. S&P Global expects expansion in artificial intelligence and defense to increase global copper demand by 50% by 2040.

The United States imports roughly half of its copper requirements each year and has only two operational copper smelters, owned by Freeport-McMoRan and Rio Tinto, respectively.

Tariff Policy Pits Domestic Supply Against Manufacturing Costs

Tariffs could make imported copper more expensive while improving the economics of U.S. mining, smelting and refining projects.

A Rio Tinto executive told Reuters earlier this year that existing copper tariffs and related mechanisms did little to offset the challenging economics of the company's U.S. smelter.

Broader tariffs, however, could also increase input costs for manufacturers that depend on copper, including producers of electrical equipment, automobiles, construction products and other industrial goods.

That trade-off has complicated the administration's effort to encourage domestic production without adding to inflation or conflicting with its broader emphasis on affordability.

Policy Uncertainty Keeps Copper in U.S. Market

The unresolved tariff policy is also discouraging copper from returning to markets outside the United States, further tightening international supply.

"As long as (tariff) policy remains unresolved, that possibility reduces the incentive to return metal to international markets," said Jacob White, a minerals analyst at Sprott Asset Management, which invests in copper producers.

Courtesy: www.reuters.com