Section 232 returns: Trump's tariff hits $360-mn Indian copper exports

Move targets national security but may raise costs for US sectors like EVs, semiconductors, and defence

US President Donald Trump has signed a proclamation imposing 50 per cent tariffs on copper imports starting August 1, citing national security concerns under Section 232 of the Trade Expansion Act of 1962.

 

The decision is aimed at reducing dependence on foreign copper, which Washington claims poses a risk to critical domestic sectors such as defence, clean energy, and infrastructure.

 

India exported $360 million worth of copper products to the US in the financial year 2024-2025 (FY25), including plates, tubes, and other semi-finished forms. These shipments will now be more expensive. But since the tariff applies uniformly to all countries—including allies like Japan and the European Union (EU)—it creates a level playing field among global suppliers. India is unlikely to face any specific disadvantage compared to others.

 

 

“The policy could end up hurting US industry more than its intended targets. Copper is a foundational raw material for electric vehicles (EVs), power grids, semiconductors, 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,” said New Delhi-based think tank Global Trade Research Initiative in a research brief.

 

A Section 232 investigation is a formal process conducted by the US Department of Commerce which typically publishes a notice in the Federal Register, allowing public, industry stakeholders and other interested parties to provide comments, information, and advice. The Commerce Secretary must complete the investigation and report findings to the President within 270 days. The report includes whether the import of the product is a threat to national security followed by recommendations. The President has 90 days to decide what actions to take based on the findings, ranging from imposing import quotas or tariffs to not taking any measure at all. The timelines are often accelerated depending on circumstances and urgency.

 

Trump has been using the bogey of national security to impose higher sectoral tariffs under Section 232 of the Trade Expansion Act since his first term. In 2018, Trump imposed a 25 per cent tariff on steel and 10 per cent tariff on aluminium citing national security threat. Starting June 4 this year, Trump raised the import tariffs on both steel and aluminium to 50 per cent. Trump also imposed a 25 per cent tariff on automobiles and auto parts effective April 3 and May 3, respectively.

 

The Trump administration has started additional Section 232 investigations covering sectors such as lumber, pharmaceuticals, semiconductors, critical minerals, processed minerals, trucks and truck parts, commercial aircraft, and jet engines. The investigation into semiconductors was launched in April.

 

The results of this investigation are expected in two weeks. 

Spelling it out

 

*   Section 232 authorises the Presidentto impose tariffs on imports deemeda threat to national security

*   The US Department of Commerce conducts a formal investigation, gathering public and industry input

*   The US Commerce Secretary must report their findings and recommendations to the US President within 270 days

*   The President has 90 days to decide on an action, which can include tariffs or import quotas

*   The lawallows for broad interpretation of “national security” to protect critical domestic industries

*   It has been previously used to impose tariffs on steel, aluminum, and now, copper imports