- President Trump last week announced a new 50% tariff on copper imports.
- Utah's three copper mining operations are already in expansion mode.
- Utah has earned a top global ranking as destination for mining-related investment.
Amid the more than two dozen new tariffs President Donald Trump announced last week that target U.S. imports from international trading partners, he also slipped in a new, sector-specific levy on copper imports, now set for 50% beginning Aug. 1.
Trump said the decision came after receiving what he described as a “robust national security assessment” that highlighted copper’s importance to national security measures.
“Copper is necessary for Semiconductors, Aircraft, Ships, Ammunition, Data Centers, Lithium-ion Batteries, Radar Systems, Missile Defense Systems, and even, Hypersonic Weapons, of which we are building many,” Trump wrote in a Truth Social post last Wednesday. “Copper is the second most used material by the Department of Defense.”
The president’s potential tariff could have a big impact on Utah, which has three copper mining operations, including Rio Tinto’s massive Kennecott mine about 30 miles southwest of Salt Lake City.
What’s the point of the new copper tariff?
Like earlier sector-focused tariffs on steel, aluminum and automobile imports, Trump says steep tariffs are an effective tool to bolster the development of new, U.S.-based resources in critical industries.
To be sure, the demand for copper is on the rise in the U.S. and across the world, driven in large part by the “electrification” of the global economy, which includes skyrocketing energy demands and copper’s critical role as the literal conduit for that power at every level including production, transmission and use.
According to a 2024 report commissioned by the Copper Development Association and conducted by S&P Global Market Intelligence, refined copper imports account for 44% of U.S. demand and are expected to rise to 60% by 2035.
But the U.S. is home to vast, untapped copper resources and has the potential to reduce its reliance on import volumes by increasing domestic mining and processing capacity, according to Adam Estelle, president and CEO of the Copper Development Association
“Copper demand is rising as society enters a new era of electrification and digitalization,” Estelle said after reviewing the S&P Global report last year. “With approximately 275 million metric tons of copper reserves and resources in U.S. soil, America is well positioned to be self-reliant in meeting copper demand for generations to come.”
Estelle noted that even with an increase in domestic copper output, growing U.S. demand will remain dependent on the international import market for the foreseeable future.
“However, we must be strategic to ensure our copper endowment can be accessed and supplemented,” he said. “This requires an all-of-the-above approach that combines increased domestic mining and refining, increased recycling, and continued trade with reliable partners.”
Utah’s unique place in U.S. copper production
Utah is uniquely positioned in the world of copper production with three active copper mining operations including one of the longest running and most prolific copper mines in the world, Rio Tinto’s Kennecott open-pit mine at the base of the Oquirrh Mountains.
The Kennecott facility employs approximately 2,000 Utahns and includes one of only two operating copper smelters in the U.S., a feature that strategically positions Rio Tinto to support domestic production of copper metal for decades to come, according to the company.
It also sells 100% of its copper output to U.S. customers and in 2023 invested close to $1 billion in the mine, smelter and refinery to expand and modernize the facility.
In response to a Deseret News inquiry about potential impacts of Trump’s proposed tariff increase on copper imports, Rio Tinto Copper chief executive Katie Jackson noted the company’s ongoing efforts to expand its domestic copper mining and processing capacities to meet growing demand.
“There is increasing recognition by the U.S. government of the need for domestic sources of copper and other critical materials to support manufacturing and to power the country’s energy future,” Jackson said in a statement shared via email. “Rio Tinto can play a significant role in helping to deliver these materials including from our Kennecott copper operations in Utah, home to one of only two operating copper smelters in America, and the Resolution Copper project in Arizona — which has the potential to be one of the biggest copper mines in the country.
“We have a strong desire to invest more in American copper and we see significant opportunities to grow our business in the United States.”
Mining incentives in Utah
In a Deseret News interview, Brian Somers, president of the Utah Mining Association, said the expected increase in the copper demand over the next 25 years will be near the level of all the copper ever produced in all of human history.
“There is massive demand growth on the horizon,” Somers said. “Rising energy needs, data centers and advanced manufacturing all have implications for copper demand. You can’t generate or transmit or use energy without copper.”
Somers said Utah’s powerful position when it comes to copper production and refinement is bolstered by more than the rich mineral content that lies below the surface.
“I think that not only are we in a good spot because of an amazing mineral endowment, but also because the state has been great at making the jurisdiction a very attractive place to mine.”
Somers noted a series of incentives adopted by state lawmakers are encouraging both new exploration efforts and expansion of existing operations across the spectrum of mineral extraction in the Beehive State. It has also helped seed efforts to bring historic mining operations back online with efficient new technologies.
While Kennecott spent nearly $1 billion expanding and upgrading its Bingham Canyon operations in 2023, including adding new underground mining capabilities, copper mining efforts in Milford and San Juan County are also investing in expanded operations.
Underscoring Somers assessment of Utah as a prime destination for mining investment, Canadian public policy think tank Fraser Institute ranked the state the top jurisdiction in the world for “investment based on the Investment Attractiveness Index” in a 2023 survey of global mining and exploration companies. Utah moved up from 17th in 2022.