US Imposes 50% Tariff on Copper Imports from August 1; Limited Impact Seen on India

New Delhi, July 31 — The United States has announced a 50% tariff on imports of semi-finished copper and copper-based products, effective August 1, 2025. The move is part of a broader push to reduce reliance on foreign metals and strengthen domestic supply chains under national security considerations. While global copper prices dipped following the announcement, the impact on Indian exporters is expected to be limited due to their relatively low exposure to the U.S. market (around $360 million total exports of copper and related goods, including plates, tubes, and other semi-finished items).

However, there might be a ripple effect due to the high tariffs on the global trade flows, thereby affecting the input costs for electronics and semiconductor industries, particularly for emerging markets such as India.

Tariff to Apply Uniformly Across Countries

According to a White House executive order dated July 30, the new duty will cover all imports of semi-finished copper products and intensive copper derivative products, including plates, tubes, and other forms. The order stated that these imports “threaten to impair the national security of the US,” and the tariff will apply to all goods entered for consumption or withdrawn from warehouses starting 12:01 a.m. EDT on August 1, 2025.

India’s Copper Exports to the US Marginally Affected

Economic analysts expect a limited impact on India, as the tariff is non-discriminatory and applies equally to all trading partners, including close US allies such as Japan and the European Union. This creates a level playing field for all exporters.

India Remains a Net Importer of Copper

India is a net importer of copper, with total imports standing at USD 14.45 billion in FY25. Its primary suppliers are Chile, Indonesia, and Australia. In contrast, India also imported USD 288 million worth of copper scrap from the US, a flow that may be disrupted due to the tariff-induced imbalance in copper trade dynamics.

US Justified its Tariff Policy on National Security Grounds

The US government cited risks to critical domestic sectors such as defence, clean energy, semiconductors, and infrastructure, stating that imported copper is vital to these industries. Copper plays a key role in manufacturing electric vehicles, power grids, and defence electronics, and the tariff is seen as a step towards domestic supply chain security.

Disparity in Tariff Structures

Compared to the US move, India maintains relatively modest copper import tariffs:

• 2.5% on copper ore and concentrates
• 5% on refined copper and copper alloys
• 10% on specific copper articles

This stark contrast underscores the US’s more aggressive stance on protectionism.

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