New Section 232 Studies on imports of copper, scrap copper and derivative products | Polsinelli

On February 25, 2025, President Trump signed an executive regulation that cited the Minister of Commerce (secretary) in order to initiate an investigation in accordance with Section 232 of the 1962 (§ 232) trade expansion law in order to determine whether the imports of copper, scrap copper and copper derivative products are threatening to affect national security. This investigation could affect the availability of copper in the USA at short notice and possibly lead to new investments in the United States.

To discuss the effects on or the possibilities for your company as part of this new investigation of section 232, please contact Deanna Okun or Lydia Pardini.

In the order, the president stated that a single foreign producer controls over 50% of global copper melting capacity and has four of the five largest refinery systems. The US melt and refinement capacity extension remains considerably behind despite the extensive domestic copper reserves.

The investigation will focus on the effects on the national security of copper imports in all forms, including but not limited: (1) raw copper; (2) copper concentrates; (3) Refined copper; (4) copper alloys; (5) scrap copper; and (6) derivative products. For the investigation, the secretary will evaluate the factors specified in USC § 1862 (D), such as: In addition to these legal factors, the Executive Ordinance further indicates the secretary to evaluate the following nine (9) factors:

1. The current and predicted demand for copper in the areas of defense, energy and critical infrastructure of the United States;
2. The extent to which domestic production, melting, refinement and recycling can meet demand;
3. The role of foreign offer chains, especially large exporters, in satisfying the United States' demand;
4. The concentration of the United States copper imports of a small number of suppliers and the associated risks;
5. The effects of subsidies for foreign government, overcapacity and predatory trade practices on the competitiveness of the United States;
6. The economic effects of artificially suppressed copper prices due to dumping and government -funded overproduction;
7. The potential for export restrictions by foreign nations, including the ability of foreign nations to weapons their control over sophisticated copper supply;
8. The feasibility of increasing domestic copper cuts, melting and refining capacity to reduce import confidence; And
9. The effects of current trade policy on domestic copper production and the question of whether additional measures, including tariffs or quotas, are required to protect national security.

Within 270 days of the executive regulation (ieUntil November 22, 2025) the secretary will submit a report to the President, in which the knowledge contains whether the US dependency of copper imports threatens the national security and recommendations for the reduction of such threats and the strengthening of the US copper copper supply chain. The administration then determines the corresponding measures, if available.

Section 232 is still a preferred instrument adjustment tool for the Trump administration. After President Trump's first term, he revived the long -term statute and carried out eight (8) investigations by § 232 investigations into imports such as steel, aluminum and uranium ore. Of these various studies, only the examinations of steel and aluminum imports led to new tariffs – but these tariffs remain today, almost seven years after the issue.

As a rule, the US Ministry of Trade invites interested parties to submit written comments or information relevant to the products that are subject to Section 232.