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It
will have a big impact, said Trump before signing the executive
order to study copper imports.
On a call with reporters, White House trade adviser Peter
Navarro portrayed the move as an effort to stop China's build
out of its copper sector and to address a broader national
security vulnerability. There is also a desire to restore the
domestic mining, smelting and refining of copper given potential
military and technological needs.
Trump has long said his trade goals are to ensure that imports
are equal in size to exports, so that the United States doesn't
run trade deficits. But America runs a surplus with copper and
the administration sees a national security risk from the
forecasts of supply and demand.
Last year, the United States exported $11.3 billion of copper
and imported $9.6 billion worth of copper, according to the
Census Bureau.
The Federal Reserve's index of copper, nickel, lead and zinc
mining peaked in 1998 and has since fallen by more than 30%.
Trump has separately removed exemptions on his 2018 tariffs of
steel and aluminum. He also plans to levy 25% tariffs on all
imports from Mexico and Canada, with Canadian energy products
such as oil and electricity being taxed at 10%.
The U.S. president has also pledged a broader set of tariffs to
match the rates that the U.S. government says other countries
charge, as well as specific tariffs on autos, computer chips and
pharmaceutical drugs.
Trump's broader tariffs on as much as $3 trillion in imports
have raised concerns among economists about higher prices and a
broader slowdown in the economy. Still, copper is relatively
modest component of trade and on its own would be unlikely to
spur broader inflationary concerns.
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