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Section 232 returns: Trump's tariff hits $360-mn Indian copper exports
The tariff, announced amid a broader re-emergence of Trump's protectionist trade agenda, is aimed at reducing the United States' reliance on foreign copper. Washington argues that such dependence poses a risk to critical domestic sectors such as defence, clean energy, power infrastructure, and semiconductors.
India among impacted exporters
India exported $360 million worth of copper products to the US in FY25, comprising plates, tubes, and other semi-finished forms. These shipments will now become significantly more expensive for US buyers. However, since the tariff applies uniformly to all countries—including US allies such as Japan and the European Union (EU)—India is unlikely to be specifically disadvantaged compared to other global exporters.
According to a research brief by New Delhi-based think tank Global Trade Research Initiative, the policy could end up hurting the US economy more than its intended targets.
'Copper is a foundational raw material for electric vehicles, 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,' the brief stated.
What is Section 232?
Section 232 of the US Trade Expansion Act of 1962 allows the President to impose tariffs or quotas if imports are deemed to threaten national security. The process begins with a Department of Commerce investigation, which includes public input and ends with a report to the President within 270 days. The President then has 90 days to determine whether and what action to take. Although statutory timelines are fixed, investigations are often accelerated under exigent circumstances.
Trump, known for invoking Section 232 during his first term, previously used it to impose:
A 25% tariff on steel and 10% on aluminium in 2018;
Increased both to 50% in June 2025;
A 25% tariff on automobiles and auto parts in April and May this year.
The latest copper tariff is seen as part of a broader trade reconfiguration strategy.
More industries under review
The Trump administration has launched additional Section 232 investigations covering:
Lumber
Pharmaceuticals
Semiconductors
Critical and processed minerals
Commercial aircraft and jet engines
Trucks and truck parts
The ongoing semiconductor investigation, launched in April 2025, has already been expanded to include consumer electronics such as smartphones and laptops. The findings are expected within two weeks, and trade experts warn of potential spillover effects on India's iPhone exports to the US if these are deemed to pose a national security threat.
While the new copper tariff may align with Trump's political strategy of reshoring industrial supply chains, its downstream effects on the US defence, clean energy, and technology ecosystems could be far-reaching. For India, the move adds a new layer of complexity in its export growth strategy, particularly as it expands its presence in global manufacturing supply chains.
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