MS-Metals Mining US Tariffs to Exclude Copper Cathode - European Equity Implications-20250730

What's new? The White House has announced universal 50% tariffs on imports ofsemi-finished copper products (e.g. pipes, wires, rods, sheets, tubes) and copper-intensive derivative products (e.g. pipe fittings, cables, connectors, electricalcomponents), effective August 1st. Importantly, copper input materials (ores,concentrates, mattes, cathodes, anodes) and scrap are not subject to S232 orreciprocal tariffs. The copper S232 tariffs apply to the copper content of a product,and do not stack with auto 232 tariffs.

In addition, under the Defense Production Act, 25% of high-quality copper scrapproduced in the US is required to stay in the US. We note the implied grade of UScopper scrap exports has been falling YtD (see here). In addition, 25% of copperinput materials produced in the US is required to be sold in the US and this will riseto 30% in 2028, and 40% in 2029.