Acting under Section 232 of the Trade Expansion Act of 1962, President Trump this week issued a Presidential Proclamation imposing a 50 percent ad valorem tariff on the copper content of all imports of “semi-finished copper products” and “intensive copper derivative products.” This is the first of the various Section 232 investigations initiated during the second Trump Administration to yield a new tariff regime. The tariffs take effect at 12:01 a.m. EDT on August 1, 2025, and will apply to imports of these products from all countries.
Basis for the President’s Actions
In February of this year, the President directed the Secretary of Commerce to conduct an investigation under Section 232 concerning the effects of imports of copper products on U.S. national security. On June 30, the Secretary of Commerce transmitted his report to the President, finding that such imports are being imported into the United States in quantities and under circumstances that threaten to impair the national security of the United States. At the time of publication of this insight, the report has not yet been released by Commerce’s Bureau of Industry and Security.
As summarized in the Proclamation, the Section 232 investigation report concluded that the United States’ increasing reliance on foreign copper, particularly in smelted and refined forms, has undermined the domestic copper industry and exposed the country to strategic vulnerabilities. The report noted that copper is the second most widely used material by the Department of Defense and is essential to a broad range of defense systems and critical infrastructure. The report cited global overcapacity, foreign subsidies, and unfair trade practices as key contributors to the erosion of U.S. copper production capabilities.
Copper Products Covered, “Stacking” of Other Tariffs, and Process for Including Additional Copper Derivative Products
The Proclamation imposes a 50 percent tariff on the copper content of both “semi-finished copper products” and “copper-intensive derivative products,” including but not limited to copper pipes, wires, rods, sheets, tubes, pipe fittings, cables, connectors, and electrical components. Notably, copper ores, concentrates, mattes, cathodes, anodes, and copper scrap are currently excluded from the Section 232 tariffs. The non-copper content of affected products remains subject to other applicable duties, which may include reciprocal tariffs and those imposed pursuant to other Presidential actions.
The Proclamation also adjusts the existing tariff “stacking” hierarchy as between existing Section 232 tariff regimes with overlapping coverage. Specifically, if a product is subject to both the copper tariffs and Section 232 tariffs on automobiles and auto parts, only the auto tariffs will apply.
Furthermore, the Proclamation authorizes the Secretary of Commerce to establish a process within 90 days for including additional copper derivative products within the scope of the tariffs. The process is intended to be “consistent with” the procedures for petitioning to include additional steel and aluminum derivative products within the scope of their respective Section 232 tariff regimes, in which interested parties will have several windows each year to propose (and oppose) the inclusion of additional products.
Notably absent is an exemption or separate tariff rate for products of the United Kingdom, which received a lower rate or tariff-rate quota under other Section 232 regimes covering automobiles, steel products, and aluminum products. Instead, the Proclamation indicates that the two countries will “coordinate…to adopt a structured, negotiated approach to addressing the national security threat in the copper sector.”
Further Assessment of Tariffs on Refined Copper
The Proclamation also directs the Secretary of Commerce to provide an update on domestic copper markets, including refining capacity and the market for refined copper in the United States, by June 30, 2026. The findings of this update will inform a further decision by the President concerning whether to phase in a universal import duty on refined copper starting at 15 percent on January 1, 2027, and increasing to 30 percent on January 1, 2028. The Proclamation indicates that such actions were recommended by the Secretary of Commerce in its Section 232 report. Notably, a similar “monitoring” program arising out of the 2018-2019 Section 232 automobiles investigation ultimately gave rise to the Section 232 automobile tariffs in place today.
Guidance from CBP
U.S. Customs and Border Protection (CBP) has issued operational guidance through CSMS #65794272 to assist importers, brokers, and filers in complying with the new tariff requirements. All entries of covered products must be classified under HTSUS headings 9903.78.01 (for copper content, subject to the 50 percent duty) and 9903.78.02 (for non-copper content, subject to 0 percent duty). Importers must report the copper and non-copper content on separate entry summary lines, using the same HTSUS classification and country of origin for both lines.
The copper content’s dutiable value must be determined in accordance with the Customs Valuation Agreement, typically based on the invoice price paid for the copper content. If the copper content cannot be separately valued, the entire entered value of the good will be used to assess the duty amount. Importers are required to maintain documentation substantiating the reported copper content value, including bills of materials, invoices, and accounting records. Failure to provide adequate documentation may result in CBP assessing duties on the full value of the imported article and may expose importers to penalties, loss of import privileges, or criminal liability.
No drawback will be available for duties imposed under this Proclamation. Additionally, goods subject to the new tariffs and admitted into U.S. foreign trade zones on or after August 1, 2025, must be entered under “privileged foreign status” and will be subject to the applicable duties upon entry for consumption. Consistent with prior Section 232 actions taken by the President, no “on the water” or transit-type exemptions appear to be available at this time.
Preparing Supply Chains
Cassidy Levy Kent’s attorneys, economists, compliance experts, and licensed customs brokers are ready to help companies develop strategic responses to the latest changes in U.S. tariff policy and plan for potential developments. Cassidy Levy Kent has extensive experience counseling clients to plan compliant supply chains that manage tariff risks, and we routinely assist with preparing and filing comments for consideration in Section 232 investigations. Our team’s deep familiarity with trade law and policy enables clients to adapt and stay ahead of the curve.