Yergin: America’s Copper Hunger Increasingly Hard To Feed

In a study published in July, 2022, researchers at S&P Global projected a “looming mismatch” related to global supply and demand for copper, a critical energy metal which is integral to meeting the world’s energy needs. I wrote then that the future of copper was coming at us fast, and recent events indicate a potential crisis could well be arriving ahead of schedule.

Using Tariffs To Spur Copper Mining

As part of his administration’s efforts to incentivize major new investments in the U.S. mining sector, President Donald Trump said on July 8 that he will impose a 50% tariff on copper imports effective August 1. “I am announcing a 50% TARIFF on Copper, effective August 1, 2025, after receiving a robust NATIONAL SECURITY ASSESSMENT,” Trump wrote in a post on Truth Social. “Copper is necessary for Semiconductors, Aircraft, Ships, Ammunition, Data Centers, Lithium-ion Batteries, Radar Systems, Missile Defense Systems, and even, Hypersonic Weapons, of which we are building many. Copper is the second most used material by the Department of Defense.”

Whether the President’s strategic approach to spurring domestic investment in new mines will succeed is an open question, but his assessment of the ubiquitous presence of copper as integral to pretty much every weapons system and mode of transportation key to America’s defense is undeniable. For the Pentagon, the current situation in which the U.S. imports roughly 45% of its daily copper needs (per U.S. Commerce Department data) this represents a national security risk even though most imports originate in Chile and Canada.