Tax Insights: US tariffs on certain copper imports from Canada

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Issue 2025-28

In brief

What happened? 

On July 30, 2025, US President Donald Trump signed a proclamation¹ that will impose, starting August 1, 2025, a 50% tariff on imports of semi-finished copper products and intensive copper derivative products from all countries, including Canada. The proclamation is issued under section 232 of the US Trade Expansion Act of 1962. It cites reasons relating to “national security” to boost domestic production of the subject copper products and “promote investment, employment and innovation in the domestic copper fabrication sector, strengthen supply chains, enhance industrial resilience, and generate meaningful economic benefits.”

Why is it relevant?

These US tariffs should not significantly affect the Canadian copper industry, because its main exports (raw and refined copper) are not subject to the tariffs. However, any Canadian producers of semi-finished copper products and intensive copper derivative products will be impacted. More widely, Canadian businesses that source goods that contain these products from the United States will likely experience cost increases due to the tariffs.

Actions to consider

Canadian producers of the affected copper products should seek alternative export channels (i.e. customers in non-tariff countries). Businesses importing goods from the United States that contain these copper products could, likewise, consider sourcing them from non-tariff countries in addition to implementing other strategies to control cost and manage cashflow.

In detail

US tariffs on certain copper imports

Key provisions in the July 30, 2025 proclamation include:

• effective 12:01am ET August 1, 2025, a 50% tariff will apply on all imports into the United States of:
  • semi-finished copper products (e.g. copper pipes, wires, rods, sheets and tubes)
  • intensive copper derivative products (e.g. pipe fittings, cables, connectors and electrical components)
• within 90 days of the proclamation’s issue date (i.e. by October 28, 2025), a process for including additional derivative copper articles will be established, and domestic producers or industry associations will be able to request for additional derivative copper articles to be subject to these tariffs
• the non-copper content of all copper articles subject to this proclamation will continue to be subject to “reciprocal tariffs” previously imposed by an April 2, 2025 executive order²
• there is no stacking of tariffs – if a product is subject to:  
  • copper tariffs, the copper content is not subject to the reciprocal tariffs
  • auto tariffs (previously imposed by a March 26, 2025 executive order³), the copper tariffs do not apply
• copper input materials (e.g. copper ores, concentrates, mattes, cathodes and anodes) are not subject to copper or reciprocal tariffs
• the US Customs and Border Protection will issue guidance for compliance, and outline maximum penalties (including monetary penalties, loss of import privileges and criminal liability) for non‑compliance, with declaration requirements regarding copper content of imported articles
• no drawback will be available with respect to these tariffs
• if domestic copper markets (including refining capacity and US refined copper market) have not achieved sufficient recovery by June 30, 2026, the possibility (at the President’s discretion) of a phased universal import duty on refined copper of:
  • 15%, starting January 1, 2027
  • 30%, starting January 1, 2028

The takeaway

These tariffs will not have as negative an impact on Canada’s copper industry as originally expected, because Canada primarily exports raw and refined copper, which are not subject to the tariffs. Canadian producers of semi-finished copper and intensive copper derivative products, to which these tariffs do apply, who export to the United States should evaluate their sales channels to assess alternative markets and engage with their supply chain to negotiate lower raw material input costs.

Goods or components from the United States that contain material amounts of these copper products are likely to have significant price increases to reflect the impact of US tariffs. Canadian companies procuring such products from the United States should evaluate their supply chain to understand the full impact of the tariffs on their input costs and identify alternative suppliers of goods or components from non-tariff countries. Cost and cash management strategies should be implemented and pricing strategies revisited to balance the impact of cost increases with competitive pricing, while managing potential margin shortfalls.

Canada has not announced any measures to counter these US tariffs (e.g. imposing a Canadian surtax on certain US-origin imports). In an official statement, Prime Minister Carney stressed Canada’s commitment to the Canada-United States-Mexico Agreement (CUSMA) and hinted at a careful approach to retaliation. For sectors like steel, aluminum, automobiles and copper that will be significantly impacted by US tariffs, “the Canadian government will act to protect Canadian jobs, invest in our industrial competitiveness, buy Canadian, and diversify our export markets.” This indicates that Canada might support its industries (via subsidies, loans or procurement policies) and seek alternate markets, rather than immediately mirror the United States with a new tariff of its own on copper or other goods.  Notably, the Canadian government did not announce a new tariff specifically on US copper or other products in direct response to the US copper duty. The US tariff on copper applies to all foreign sources, not just Canada, so a symmetrical retaliation (like a Canadian tariff on US copper exports) would have limited effect and could even harm Canadian manufacturers who import some US copper inputs. Instead, Canada leveraged the broad retaliatory framework it already had in place and kept further measures in reserve, pending the outcome of trade negotiations with the US administration.

PwC can help your business navigate this current tariff situation. See our:

• Tax Insights “US tariffs and Canadian countermeasures: How will it affect Canadian businesses?” (August 7, 2025 update) for strategies that can help Canadian businesses adapt to these and any potential new tariffs
• Tariffs, Trade and Policy Resource Centre for information to help your business assess and manage these tariffs

^{1.  Proclamations “Adjusting Imports of Copper into The United States” (July 30, 2025) at www.whitehouse.gov.
2.  See our Tax Insights “US imposes reciprocal tariffs on its trading partners: How will it affect Canadian businesses?". 
3.  See our Tax Insights “US tariffs on imports of automobiles and automobile parts from Canada” (May 2, 2025 update).}