US hits copper with 50% tariff but India isn’t too worried

The United States will impose a steep 50% tariff on semi-finished copper products starting August 1. The decision, formalised through a White House executive order dated July 30, cites national security concerns over the country's growing dependence on foreign copper.

“...all imports of semi-finished copper products and intensive copper derivative products...shall be subject to a 50 per cent tariff,” the order states. The new duties will apply to all shipments entering the country from 12:01 a.m. EDT (9:31 am IST) on August 1, unless the measure is modified or withdrawn later.

India exported copper goods worth $360 million to the US in FY25, including plates, tubes, and other semi-finished forms. These products are now set to become costlier for American buyers. But, as per a PTI report, analysts say the fallout for India will be minimal.


“India is unlikely to face any specific disadvantage compared to others,” said Ajay Srivastava, founder of think tank GTRI, noting that the tariff applies uniformly to all nations, including US allies like Japan and the EU. “Moreover, the impact on India's copper trade is limited.”

India is a net importer of copper, with inbound shipments totalling $14.45 billion in 2024-25. Its key suppliers include Chile, Indonesia, and Australia. At the same time, India imported $288 million worth of copper scrap from the US last fiscal, a trade flow that may now take a hit.

“The contrast between the two countries is striking. While the US has resorted to protectionist tariffs (50 per cent), India charges 2.5 per cent import tariff on copper ore and concentrates, 5 per cent on refined copper and copper alloys, and 10 per cent on certain copper articles,” Srivastava pointed out.

The Biden administration, now replaced by Donald Trump as president, had earlier pitched copper as a strategic material for sectors such as defence, clean energy, and infrastructure. Copper is critical for electric vehicles, semiconductors, power grids, and defence electronics.

“A sudden 50 per cent hike in input costs will ripple through these sectors, slowing production, raising prices, and undermining the US clean energy transition,” Srivastava warned.

With inputs from PTI