U.S. Investigates Copper Imports Under National Security Threat

The United States has launched a national security threat investigation under Section 232 of the Trade Expansion Act, targeting imported copper and its derivative products since March 10. This action has raised concerns among international trade partners, including South Korea.

KITA's Plea for Exemption

The Korea International Trade Association (KITA) has formally requested the U.S. Department of Commerce to exempt Korean copper products from potential tariffs, arguing they pose no threat to U.S. national security. KITA highlighted that Korean copper constituted only 3.5% of U.S. imports last year and emphasized the significant investments by Korean companies in the U.S. to enhance production capacity.

Investments and Concerns

Notable investments include LS Cable & System's $800 million project in Virginia for a submarine power cable plant and Poongsan Corporation's long-term $500 million investment in Iowa. KITA warns that tariffs could hinder the U.S. power infrastructure expansion and affect industries like batteries, IT components, and construction materials.

Proposed Solutions and Broader Implications

KITA suggests narrowing the scope of derivative products subject to tariffs or implementing them in phases to allow supply chain adjustments. Cho Sung-dae of KITA notes the expanding use of Section 232 investigations, from steel and aluminum to potential probes into semiconductors and pharmaceuticals, underscoring the need for strategic cooperation to mitigate trade measure impacts.