President Trump’s upcoming tariffs of 50% on copper imports highlight the complex regulations that have hindered the U.S. from effectively mining and refining key minerals. These tariffs, which will take effect in August, specifically target advanced semi-finished copper, crucial for everything from the power grid to military equipment. This decision aligns with his broader strategy from June to impose tariffs on steel and aluminum to promote domestic mineral production.
The Trump administration aims to decrease dependence on foreign copper sources. However, experts suggest that without significant regulatory reforms, domestic production won’t see any substantial increase. “To build a domestic industry, revamping the permitting process should be a key focus,” said Alexander Stevens, who works on policy and communications at the Energy Institute.
Copper is vital across many sectors, including those tied to national security. The construction sector consumes the most copper—about 42%—followed by transport equipment at 18% and consumer products at 10%. Many industries heavily rely on copper, especially for defense applications and emerging technologies like electric vehicles and advanced electronics. Currently, the U.S. imports about 45% of its refined copper, primarily from countries like Chile, Canada, Mexico, and Peru. Establishing new mines can take a long time—averaging around 30 years—which complicates efforts to boost local production.
Even if there’s an increase in domestic copper mining, there are only a handful of smelting facilities in the U.S., while China controls a significant portion of global copper smelting. Back in 1997, the U.S. had 35 mines and 11 smelters, but today those numbers have dropped to 25 mines and just three smelters.
Stevens pointed out that much of this problem stems from overlapping federal laws like the National Environmental Policy Act, which require lengthy public reviews and often lead to legal challenges that prolong the permitting process. An example of this is the Resolution Copper mine, where copper was discovered in 1995, yet the permit process began in 2004. More than two decades later, it remains unstarted due to ongoing litigation from Native American tribes and environmental groups.
“You can impose all the tariffs you want, but with a 10-to-20-year permit process, developing anything will take ages,” Stevens remarked. The Trump administration asserts that it is taking a comprehensive approach to energize the copper industry. In April, Trump issued a Presidential Order aimed at fast-tracking the resolution copper mine and other mining initiatives. In May, the Supreme Court dismissed a lawsuit that had challenged the mine project, making it more likely for this site to become one of the largest copper mines globally.
“The U.S. must not depend on foreign copper for vital military hardware, infrastructure, and daily electronics,” stated White House spokesperson Kush Desai. “The administration is committed to revitalizing domestic manufacturing, which is crucial for our national and economic security.” However, Ryan Young, a senior economist at the Competitive Enterprise Institute, cautioned that without deeper regulatory changes, tariffs might lead to supply shortages and higher prices across various industries.
Young added, “The administration has claimed it’s working to relax mining regulations.” Still, he warned of potential copper shortages and rising costs affecting numerous sectors. Stevens observed that while there have been efforts to ease restrictions and expedite approval for new mining operations, significant reform will ultimately depend on Congressional action, which could be challenging given the need for a supermajority in the Senate.
