U.S. tariff on copper: Implications and the way forward

Copper isn’t just a mere element. From shaping ancient societies to enabling today’s digital connectivity, it has been central to human development for thousands of years. And now in a fresh twist to trade disruptions, this critical metal that powers EVs, solar panels, electronics and construction is caught in the crosshairs of global trade tensions.

The U.S.’s latest announcement of a 50 per cent tariff on copper imports has led to a volatile rise in copper prices and sparked fresh concerns across supply chains.¹

So, what does this mean for India?

India exported USD2 billion worth of copper in FY25-and the U.S. accounted for USD360 million (17 per cent) of it²

While the U.S. is our third-largest export destination for copper, these tariffs may dent that flow.³But there are also opportunities to tap into

As disruptions flare up across the global copper supply chain, new demand pockets may arise, which India can cater to

Besides, domestic consumption of copper, which is currently around 750,000 tonnes, is expected to rise by 7 per cent.⁴ This can offer another cushion against export headwinds.

What can India do next?

Diversify markets

India can look beyond the U.S. and cater to other countries, especially those feeling the pinch of redirected global flows. To give an example, India has an unrealised export potential worth USD204 million in articles of copper⁵
Engage diplomatically

With a trade deal on the table, India can explore exemptions or trade windows with the U.S.
Recycling boost

India can ramp up refining and recycling infrastructure and processes to boost production and improve price competitiveness
Domestic production

By investing in domestic mining and processing, India can build long-term supply resilience

As global disruptions continue to evolve, by focusing on these strategic measures, India can pave a resilient way forward and strengthen supply chains of critical elements.

^[1] Trump says U.S. to impose 50% tariff on copper imports, copper futures jump, The Hindu, 9 July 2025, accessed on 11 July 2025

^[2] Trump’s 200 per cent pharma and 50 per cent copper tariffs: How badly could they hit Indian exports?, First Post, 9 July 2025, accessed on 9 July 2025

^[3] Trump’s 200 per cent pharma and 50 per cent copper tariffs: How badly could they hit Indian exports?, First Post, 9 July 2025, accessed on 9 July 2025

^[4] Copper demand to grow 7 per cent in India propelled by clean energy projects: PHDCCI, ET Energy World, 31 March 2025, accessed on 9 July 2025

^[5] Export potential map, ITC, accessed on 9 July 2025