US slaps 50% tariff on copper imports: White house order to hit semi-finished products; India to see limited impact

The United States has imposed a substantial 50 per cent tariff on semi-finished copper and copper-based imports from August 1, with reportedly limited consequences for India's American exports in this sector.According to a July 30 White House executive order, copper imports into the United States are at levels that could compromise US national security. "All imports of semi-finished copper products and intensive copper derivative products...shall be subject to a 50 per cent tariff. This tariff shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 1, 2025, and shall continue in effect, unless such action is expressly reduced, modified, or terminated," it said.India's copper product exports to the US in FY2025, valued at $360 million, comprising plates, tubes, and other semi-finished items, will become costlier, according to PTI report. Think tank GTRI further noted that the uniform application of tariffs to all countries, including Japan and EU allies, establishes equality amongst global suppliers. "India is unlikely to face any specific disadvantage compared to others," said GTRI Founder Ajay Srivastava., quoted by PTI. "Moreover, the impact on India's copper trade is limited," he added.Also read: Electronics sector gets 2-weeks reprieve from 25% Trump tariffs effective August 1- Here's whyIndia primarily imports copper, with purchases of $14.45 billion in 2024-25 significantly exceeding its exports. Primary suppliers include Chile, Indonesia, and Australia.India's copper scrap imports from the US, worth $288 million, may become less economical due to altered bilateral copper trading patterns. "The US and India show notable differences. The US implements protective tariffs (50 per cent), whilst India applies 2.5 per cent duty on copper ore and concentrates, 5 per cent on refined copper and alloys, and 10 per cent on specific copper items," he explained.The US decision aims to decrease foreign copper reliance, which the US government considers risky for vital sectors including defence, clean energy, and infrastructure. Copper serves as an essential material for electric vehicles (EVs), power grids, semiconductors, and defence electronics.