Australia eyes opportunity as US tariff looms on copper

The US is set to impose a 50 per cent tariff on copper imports as soon as late July, a move that could shake global supply chains but presents potential opportunities for Australia.

The tariffs were announced by US President Donald Trump following after a 25 per cent tariff on steel and aluminium in March.

“Today, we’re doing copper,” Trump said. “I believe the tariff on copper, we’re going to make it 50 per cent.”

The most significant impact will be felt by Chile, the top copper exporter to the US. Australia’s copper exports to the US remain relatively modest – valued at close to $55 million in 2024 and less than 1 per cent of total copper exports, according to the Australian Bureau of Statistics.

However, the US tariff move could disrupt global trade patterns and open the door for Australia to strengthen its position as a reliable, low-risk supplier of critical minerals.

“While Australia’s direct copper exports to the United States are limited, trade restrictions imposed on other key trading partners have the potential of disrupting global supply chains, increasing costs, and creating uncertainty for Australian exporters,” Minerals Council of Australia (MCA) chief executive officer Tania Constable said.

“Australia has the opportunity to step forward deepening and securing supply through trade partnerships, expanding export markets, and reinforcing our position in global supply chains.

“That means continuing to position Australia as a trusted, low-risk partner for critical minerals and resources.”

The MCA supports the Australian Government’s focus on strengthening economic resilience, diversifying export markets and working with global partners to restore trade stability.

“That’s how we deliver investment certainty, protect jobs and ensure the minerals sector can meet growing international demand,” Constable said.

Australian Federal Treasurer Jim Chalmers confirmed the Government is “urgently seeking” clarity on whether Australia would be affected.