02-28-2025

Addressing the Threat to National Security From Imports of Copper

Executive OrderView the Original .pdf
View the Original .pdf

The 1-Minute Brief

What: Executive Order 14220 initiates a formal investigation into whether imports of copper in all forms threaten U.S. national security.

Money: There are no immediate financial appropriations. However, the investigation could lead to recommendations for tariffs or quotas, which would have significant financial impacts on industries that import or use copper. For context, previous steel and aluminum tariffs under the same authority added billions to the cost of imported materials.

Your Impact: If the investigation leads to tariffs, you could see higher prices for goods that use copper, including construction materials, electronics, and electric vehicles.

Status: The Executive Order was signed on February 25, 2025, and the Secretary of Commerce is directed to submit a report with findings and recommendations to the President within 270 days.

What's Actually in the Bill

Executive Order 14220 directs the Secretary of Commerce to launch an investigation under Section 232 of the Trade Expansion Act of 1962. The core function is to determine if the quantity or circumstances of copper imports are a threat to U.S. national security. The order explicitly cites concerns about increasing reliance on foreign copper and the dominance of a single foreign producer in global smelting and refining.

Core Provisions:

  • The Secretary of Commerce must investigate imports of all forms of copper, including raw copper, concentrates, refined copper, alloys, scrap, and derivative products.
  • The investigation will assess U.S. defense and critical infrastructure demand for copper versus domestic production capacity.
  • It will examine the impact of foreign government subsidies, overcapacity, and predatory trade practices on the U.S. copper industry.
  • The potential for foreign nations to restrict copper exports as a political weapon is a key area of inquiry.
  • The Secretary of Commerce has 270 days from the date of the order (February 25, 2025) to submit a report to the President.
  • This report must include findings on the national security threat and recommend actions, which could include tariffs, quotas, or other measures to boost domestic production.

Stated Purpose (from the Sponsors):

The order states its policy is to ensure a reliable and resilient domestic copper supply chain. The administration's stated goals are:

  1. To address the threat to national security posed by reliance on foreign copper.
  2. To determine if foreign market manipulation and concentrated supply chains jeopardize U.S. economic and national security.
  3. To provide recommendations for strengthening the U.S. copper supply chain through investment, permitting reforms, and recycling initiatives.

Key Facts:

Affected Sectors: Defense, Energy, Technology, Construction, Automotive, and Electronics.
Timeline: The Commerce Secretary's report is due by late November 2025. Any presidential action, such as imposing tariffs, would follow that report.
Scope: The investigation covers all imports of copper and its derivatives into the United States.

The Backstory: How We Got Here

Timeline of Events:

The Post-War Era and Industrial Dominance (1940s-1970s):

For much of the 20th century, the United States was a dominant force in global copper production. Copper was essential for post-war reconstruction and the expansion of electrical infrastructure and telecommunications. The legal framework for trade protection, the Trade Expansion Act, was passed in 1962 during the Cold War, reflecting concerns about maintaining a robust domestic industrial base for defense.

Globalization and Shifting Production (1980s-2010s):

As global markets opened, copper production and especially smelting and refining capacity shifted to countries with lower labor costs and more accessible ore bodies, such as Chile and later, China. While the U.S. remains a top-five copper producer, it became increasingly reliant on imports to meet demand, particularly for refined copper. In 2014, the U.S. imported 31% of the copper it used. By 2025, imports accounted for 45% of refined copper consumption.

The Rise of "National Security" Tariffs (2018-Present):

The Trump administration revived the use of Section 232 of the Trade Expansion Act, which had been used sparingly for decades. In 2018, it imposed tariffs on steel and aluminum, arguing that import dependency threatened national security. This set a precedent for using this tool to protect domestic industries from foreign competition. The Biden administration maintained many of these tariffs and added its own on specific goods from China, signaling a bipartisan willingness to use tariffs for strategic purposes.

Why Now? The Political Calculus:

  • Supply Chain Vulnerability: The COVID-19 pandemic and geopolitical tensions have highlighted the risks of relying on concentrated foreign supply chains for critical materials. Copper is vital for green energy technologies and advanced electronics, sectors central to current economic and security strategies.
  • Geopolitical Competition: The executive order notes that a single foreign producer controls over 50% of global copper smelting capacity. This is widely understood to be China, and the order reflects a broader strategy to counter China's dominance in critical mineral processing.
  • Economic Protectionism: Following the steel and aluminum tariffs, there is a political appetite to shield domestic industries from what are described as "predatory trade practices" and "state-sponsored overproduction." This executive order aligns with a policy of prioritizing domestic manufacturing and jobs.

Your Real-World Impact

The Direct Answer: This directly affects specific industries like manufacturing, construction, and technology, but the costs could ripple out to most Americans through higher prices on a wide range of goods.

What Could Change for You:

Potential Benefits:

  • For workers in the domestic copper industry: Tariffs could lead to increased domestic production, potentially creating jobs in mining states like Arizona, Utah, New Mexico, and Nevada.
  • For national security: A more robust domestic supply chain could make the U.S. less vulnerable to disruptions from geopolitical conflicts or trade disputes.

Possible Disruptions or Costs:

Short-term (First 1-2 years):

  • Higher Prices: If tariffs are imposed, manufacturers using copper (for plumbing, wiring, cars, electronics) will face higher costs. These costs are often passed on to consumers. For example, the 2018 steel and aluminum tariffs led to price increases for canned goods, cars, and construction.
  • Supply Chain Adjustments: Companies that rely on specific types of imported copper may struggle to find domestic alternatives quickly, potentially causing production delays.

Long-term:

  • Permanent Price Hikes: The cost of building new homes, buying cars (especially EVs), and purchasing electronics could permanently increase if tariffs remain in place.
  • Retaliatory Tariffs: Other countries could respond with their own tariffs on American exports, harming U.S. industries like agriculture and manufacturing.

Who's Most Affected:

Primary Groups: Copper miners and refiners in the U.S. (potential beneficiaries), and U.S. manufacturers in the construction, automotive, and electronics sectors (potential negative impact from higher costs).
Secondary Groups: American consumers, who would likely face higher prices for finished goods.
Regional Impact: States with significant copper mining operations like Arizona, Utah, and New Mexico could see economic benefits. States with heavy manufacturing could face economic headwinds.

Bottom Line: While intended to bolster the U.S. copper industry for national security, this action could lead to a noticeable increase in the cost of many everyday and big-ticket items for the average American.

Where the Parties Stand

Republican Position: "Protecting American Industry"

Core Stance: Generally supportive of using tariffs under Section 232 to protect domestic industries deemed vital to national security.

Their Arguments:

  • ✓ Tariffs are a necessary tool to counteract unfair trade practices from countries like China and protect American jobs.
  • ✓ A strong domestic industrial base, including for materials like copper, is essential for national security and reduces reliance on strategic adversaries.
  • ⚠️ Some Republicans express concern that broad tariffs can hurt American manufacturers who rely on imported materials and lead to retaliatory tariffs against U.S. exports.
  • ✗ Opposition is rare but can come from free-market advocates who argue against government intervention and protectionism.

Legislative Strategy: Supporting the President's authority to act under Section 232 and framing the issue as a matter of national and economic security against foreign threats.

Democratic Position: "Strategic and Targeted, Not Broad"

Core Stance: Increasingly open to using tariffs, but often advocate for a more targeted approach and working with allies, while remaining critical of broad, unilateral actions.

Their Arguments:

  • ✓ Acknowledge that targeted tariffs can be effective in addressing specific unfair trade practices, particularly from China.
  • ✓ Support investments in domestic supply chains for critical minerals to address climate change and enhance energy independence.
  • ⚠️ Raise concerns that broad tariffs can function as a "sales tax" on American consumers and businesses, increasing costs for families.
  • ✗ Oppose the use of national security as a pretext for widespread protectionism that alienates key allies.

Legislative Strategy: Generally maintaining existing tariff structures while emphasizing strategic investments and negotiations with allied nations to build resilient supply chains.

Constitutional Check

The Verdict: ✓ Constitutional

Basis of Authority:

The executive order is based on Section 232 of the Trade Expansion Act of 1962, which delegates authority from Congress to the President. Congress's power to grant this authority stems from its constitutional power to regulate foreign commerce.

Article I, Section 8, Clause 3 of the U.S. Constitution (Commerce Clause): "[The Congress shall have Power] To regulate Commerce with foreign Nations..."

Constitutional Implications:

[Delegation of Powers]: Section 232 is a legal delegation of Congress's trade authority to the executive branch. The law empowers the President to impose restrictions if an investigation finds that imports threaten to impair national security.
[Precedent]: The use of Section 232 to impose tariffs on steel and aluminum in 2018 was challenged in court but ultimately allowed to stand, reinforcing the President's authority under the statute. The Supreme Court has historically given the executive branch wide latitude in matters of national security.
[Federalism]: This is a matter of foreign commerce and national security, which are firmly established as federal responsibilities, so it does not overstep powers reserved for the states.

Potential Legal Challenges:

Legal challenges are possible but face a difficult path. Challengers would likely argue that the definition of "national security" is being applied too broadly for economic protectionism, exceeding the intent of the law. However, given prior court decisions that defer to the executive on national security matters, such lawsuits would likely be unsuccessful.

Your Action Options

TO SUPPORT THIS ACTION

5-Minute Actions:

  • Contact the Department of Commerce: Submit a public comment in support of the investigation. Look for the investigation docket on Regulations.gov once it is posted by the Bureau of Industry and Security.
  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121 "I'm a constituent from [Your City/Town] and I support Executive Order 14220 and the investigation into copper imports to protect our national security."

30-Minute Deep Dive:

  • Write a Detailed Email: Send a personalized message to your elected officials and the Secretary of Commerce detailing why you believe a secure domestic copper supply chain is vital.
  • Join an Organization: Groups representing domestic mining and manufacturing workers often advocate for such trade actions.

TO OPPOSE THIS ACTION

5-Minute Actions:

  • Contact the Department of Commerce: Submit a public comment to the investigation docket on Regulations.gov (once available) outlining concerns about potential price increases and the impact on manufacturing.
  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121 "I'm a constituent from [Your City/Town] and I am concerned that Executive Order 14220 could lead to tariffs that will raise prices for consumers. I urge [Rep./Sen. Name] to oppose broad new tariffs on copper."

30-Minute Deep Dive:

  • Write a Letter to the Editor: Explain how potential copper tariffs could impact your community or industry and submit it to your local newspaper.
  • Join an Organization: Advocacy groups focused on free trade, consumer protection, and specific manufacturing sectors (like automotive or electronics) are likely to oppose broad tariffs.