US President Donald Trump has introduced steel and aluminium tariffs, with a 50% copper tariff due to come in on August 1. Mining billionaire Robert Friedland welcomes this move, saying it will help re-establish the US copper mining industry.
Friedland, founder of Vancouver-based Ivanhoe Mines and Ivanhoe Electric, believes the tariffs are aimed at strengthening national security by building important industries at home. Copper is a crucial metal for the modern global economy, used in everything from buildings and power grids to electric vehicles and data centres.
The US imported around 50% of its copper last year, with Mexico, Chile, and Canada being the biggest sources. However, Canadian Industry Minister Melanie Joly has threatened to fight against the move, while critics argue that tariffs are inflationary and will push up prices for American consumers.
Global demand is soaring due to growing industrialisation and new technologies relying on electricity. The International Energy Agency warns that without more mining, global copper demand will be 30% higher than supply by 2035.
Friedland’s company, Ivanhoe Electric, is working on opening what will be America’s first new copper mine in over a decade. The Santa Cruz project in Arizona is expected to start production in 2028 and will deliver highly refined copper for use in electronics and modern cars.
While some experts believe Trump’s economic shake-up will boost growth, others argue that the tariffs will be detrimental to the US economy. Adam Posen, President of the Peterson Institute for International Economics, says the tariffs will impose significant costs on a wide range of people in the US.
Source: https://www.bbc.com/news/articles/cx23m55ej1zo