Canada might be Exempted from a 50% copper tariff as the US Eyes China

As the U.S. prepares to impose steep tariffs on semi-finished imported copper products this Friday, Canada is expected to be spared from the new duties, according to an economic and policy expert. The measure primarily targets Chinese producers.

U.S. President Donald Trump announced a 50% tariff on copper pipes and wiring, part of an effort to stimulate domestic manufacturing of copper products. However, Canadian producers will be exempt, as they do not manufacture the specific copper goods targeted by the tariffs—such as pipes, tubes, wires, sheets, and rods. Instead, Canada produces refined copper forms like copper concentrate, anodes, and cathodes, which fall outside the scope of the tariffs.

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“This appears to be a strategic move by the U.S. to build up its limited copper processing capacity,” said Michael Dobner, national leader of economics and policy at PwC Canada, in an interview with BNN Bloomberg. “Raw and refined copper aren’t currently a major issue between Canada and the U.S.—the main concern is that China dominates the processing sector. To reduce reliance on China, the U.S. must increase its own capacity, and these tariffs are a step in that direction, though it won’t be a quick fix.”

The announcement triggered a sharp drop in U.S. copper prices, with futures on the Comex exchange falling over 17%. A previously widening premium over the global London benchmark reversed, as some shipments were redirected in anticipation of higher U.S. prices.

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While Trump initially hinted in July that tariffs could apply to all types of copper—ranging from raw cathodes to finished goods—the White House later clarified that only semi-finished copper products, such as pipes, tubes, and heavily copper-dependent items like cable and electrical components, would be affected.

Dobner noted that the decision benefits Canada, as it primarily exports raw and refined copper, not the semi-finished goods now facing tariffs. “This is, in a sense, good news for Canada,” he said.

In 2023, Canadian mines produced 508,250 tonnes of copper concentrate, nearly half of it from British Columbia, according to Natural Resources Canada. Canada’s copper exports were valued at $9.3 billion, with the U.S. receiving 52% of that total, followed by China (17%) and Japan (12%).