In his attempt to fly through the airs the global supply chain, the US has a new obsession: copper

After a few weeks of relative tranquility, the US administration is again climbing the C tensions in its commercial war with China. Trump has announced a new 50% tariff for copper imports. A key step to torpedo China’s strategy, who currently leads its refining and casting processes.

Tightening the nuts. The president of the United States, Donald Trump, announced on Tuesday The imposition of a new 50% tariff to all copper imported to the United States. It is unknown for the moment when the measure will enter into force, but this points to a key material not only for the semiconductor industry: copper is crucial for sectors such as transport, energy or construction.

The US position. Unlike his war declared to China with the Rare earthThe United States is one of the largest copper producers in the world. He currently occupies fifth place, although his main problem is a very concrete: consumes much more than it produces. Much of the copper it uses arrives as refined cathodes from Asia, especially from China.

The goal. The United States not only seeks to protect its national industry. It aims to change the roles in this value chain:

• Encourage that copper refines within the US
• Reduce dependence on Chinese Foundions
• Press Latin America to export copper without going through China.

Although Latin America Head the list of copper producers (Chile currently dominates primary mine production with more than 20% global position), dominating refining capacity is a central role in the supply chain.

The reactions. The price of copper in the United States has reached its historical maximum in the national market After Trump’s statements, even with doubts about how it will apply and what will be the possible exceptions.

The impact. The 50% tariff on copper imports would have a remarkable impact on key industries.

• Semiconductors: copper is, along with other critical metals such as scandio, disposium or bismuth, a fundamental material for the chips industry. A few milligrams per chip are key to its manufacture.
• Automotion: The electric vehicle needs much more copper for its manufacture (motor, battery, wiring).
• Electrical networks: transformers, substations, cables.
• Consumer electronics
• Construction

Although Trump wants to obtain control over the supply chain, the measure can be shot in the foot. The United States does not have enough capacity to produce and refine all the copper it needs.

The doubts. Although Trump has announced that the copper tariff will reach 50%, it has not detailed whether the measures will affect the entire refined copper, or certain products dependent on this material. They are not known to the measure, or date of entry into force.

Be that as it may, The war for the domain of metals It will be crucial to control commercial tensions. China’s dominant position on rare earths It puts the United States in a delicate situation, which is trying to face attacking materials as concrete as copper.

In Xataka | In 1978 Chinese engineers visited two key US companies. On his return an empire began: the rare earths