No Copper Tariff Shock from Trump... Industry Says "Minimal Impact"

Due to the Domestic Industry's Focus on Smelting and Refining,
Rising Copper Prices Are Reflected in Product Prices
"No Problem... Will Consider Response If Trend Persists"

U.S. President Donald Trump's threat of tariffs on copper (electrical copper) is unlikely to have a significant impact on the domestic industry.

According to industry sources on the 26th, even if the U.S. imposes tariffs on imported copper, the Korean non-ferrous metals industry is not expected to suffer short-term damage. Domestic companies refine and purify imported copper ore to generate profits, and they mainly stockpile quantities when copper prices are stable. Even if President Trump immediately takes tariff measures and market prices fluctuate, they can utilize their stockpiled supplies.

Earlier, on the 25th (local time), President Trump ordered an investigation into the impact of copper imports on U.S. national security. This increases the likelihood of tariffs being imposed on copper in the future, following the announcement of a 25% tariff on imported steel and aluminum starting from the 12th of next month. Korea's copper product exports to the U.S. last year amounted to $570 million (approximately 816.7 billion KRW).

According to the Public Procurement Service, Korea supplied 888,000 tons of electrical copper last year, a figure that has neither significantly increased nor decreased compared to previous years. This indicates that supply and stockpile volumes have remained relatively stable.

Within the copper industry, rising raw material copper prices have been perceived as a positive factor. This is because copper product exports and imports include the so-called "escalator clause," which allows the increased copper price to be reflected in the product unit price. Recently, electrical copper prices have continued to rise. According to the London Metal Exchange (LME), as of the 25th, the price of electrical copper was $9,463 per ton, up about 9% from $8,685 per ton recorded on the 1st of last month.

An industry official explained, "If raw material prices rise, the prices of products sold by Korea also increase, so there is no problem." He added, "We are internally reviewing the need to respond if copper prices continue to trend upward, but there is no immediate impact."

Last year, Korea exported copper products worth $570 million to the U.S. and imported about $430 million worth from the U.S. Chile is the largest supplier of copper used in the U.S., providing 35% of U.S. imports, followed by Canada (25%) and Mexico (8%).