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KITA Seeks U.S. Exemption for Korean Copper Products

Yuki by Yuki
08/04/2025
in Metal Futures
KITA Seeks U.S. Exemption for Korean Copper Products
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The Korea International Trade Association (KITA) has formally urged the United States to exclude Korean copper products from potential import tariffs under a national security investigation. The request was filed with the U.S. Department of Commerce on April 1 and follows a public comment period related to an inquiry launched on March 10. This investigation is being conducted under Section 232 of the Trade Expansion Act, the same provision previously used to impose tariffs on steel, aluminum, and automobiles.

In its submission, KITA argued that Korean copper does not pose a threat to U.S. national security, highlighting that Korea’s copper products accounted for only 3.5 percent of total U.S. copper imports in 2024. The association further emphasized the significant Korean investment in U.S. manufacturing, noting that these contributions have strengthened U.S. supply chains and industrial capabilities.

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Notable examples include LS Cable & System, which is investing approximately $800 million to establish a submarine power cable facility in Virginia, with construction beginning this month. Additionally, Poongsan, a leading Korean copper manufacturer, has committed $500 million to its Iowa plant, which produces 54,000 tons of copper-rolled products annually.

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KITA also warned that imposing tariffs on copper derivatives such as wires, sheets, foils, and extrusions could adversely affect downstream industries like battery manufacturing, IT components, transformers, and construction materials. Moreover, tariffs on cables and wiring could slow the expansion of power infrastructure necessary for advanced technologies, including artificial intelligence.

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Despite these concerns, KITA acknowledged that securing a full exemption for Korean copper products may be challenging, based on past experiences. As an alternative, the association suggested narrowing the scope of the tariffs or implementing phased measures to allow companies time to adjust their supply chains.

In anticipation of potential tariffs, Korean companies are already preparing to adapt. An official from LS Cable stated that the company plans to enhance its U.S. production capacity and remain flexible by adjusting export prices from its Vietnamese subsidiary in response to market changes.

KITA’s Cho Seong-dae, head of the trade policy research office, noted that the ongoing investigation into copper tariffs follows similar measures imposed on steel, aluminum, and automobiles, with additional investigations into semiconductors and pharmaceuticals likely to follow. “We will continue working closely with the industry and focus on providing data to support government negotiations to minimize the impact of trade restrictions,” he said.

Related topics:

How to Trade Copper Futures?

How To Invest In Copper Futures?

Codelco to Supply Copper to Adani Group’s $1.2 Billion Smelter in India

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