Trump’s proposed copper tariffs could hinder, not help, US industry growth, critics argue.
While former President Donald Trump has stated that proposed tariffs on copper will help the U.S. “build a dominant copper industry again,” experts suggest that more than just tariffs are needed to revitalize domestic production.
A meaningful impediment to increased copper extraction and refining in the United States is the extensive bureaucratic process.Developing a new mine in the U.S.averages 29 years,placing it second only to Zambia globally for the longest progress time. Furthermore,the construction and authorization of a copper smelter can take over five years.
The Wall Street Journal has reportedly urged the President to “eliminate obstacles to resolving and prizes Congress to reform the National Environmental Policy Act that the Left uses to block any new yield or refining project.”
Though, critics contend that tariffs will not incentivize companies to build new smelters, wich could still face lengthy court challenges. This could result in U.S. companies paying substantially more for essential metals while waiting years for domestic supply.
Questions are being raised about how increased production of aircraft, ships, and ammunition, which rely on copper, would contribute to national security if the supply chain remains uncertain.
China’s increasing dominance in critical minerals poses a national security risk. The country’s subsidies and less stringent environmental regulations give its metallurgical factories a competitive advantage. This year, Beijing has reportedly leveraged its control over critical minerals by limiting exports to the United States, a move that previously prompted Trump to ease tariffs and export controls on china.
To counter China’s “predatory practices” and prevent global dependence on Beijing, the U.S. needs to form a united front with its allies. One proposed strategy is the creation of an alliance for critical minerals, according to BGNES.
the imposition of copper tariffs could, conversely, provide allies with further justification to consider closer ties with Beijing rather than Washington.
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