Friedland backs Trump’s copper tariff as wake-up call

[Ben Graham]

Ivanhoe Mines (TSX: IVN) founder and billionaire Robert Friedland has backed US  President Donald Trump’s plans to impose a new copper tariff starting August 1, calling it essential for building a domestic copper industry.

Once known mainly for its role in construction and wiring, copper has become a critical mineral due to its importance in defence, electronics, and electric vehicles. Friedland said the tariff will “wake people up” to America’s vulnerability in key supply chains.

“There’s a new list of critical raw materials and without it, you can’t do anything about global warming or greening the world economy and you have a critical vulnerability in national security,” Friedland told the Financial Times. “I commend the Trump administration for doing what’s obvious and intelligent — America needs to produce the metal”.

In anticipation of the tariffs, US importers have rushed to stockpile copper. Between January and April 2025, they imported 461,000 tonnes of copper, or 232,000 and 148,000 tonnes more than the same periods in 2024 and 2023, respectively.

Copper prices soared this week on the tariff announcement, but analysts expect prices outside the US to drop as major exporters like Chile, the world’s top copper producer and the largest copper supplier to the US, redirect shipments to other markets. 

Copper prices jump as Trump’s new 50% tariff raises fears of economic ripple effects

“The US does not have nearly enough mine, smelter or refinery capacity to be self-sufficient in copper,” Jefferies LLC analysts including Christopher LaFemina wrote this week. “Import tariffs are likely to lead to continued significant price premiums in the US relative to other regions.”

Speeding up permitting

The Trump administration has sought to streamline permitting for mining and drilling on public lands. Timelines that once stretched one to two years have reportedly been shortened to as little as up “to 28 days at most”. Still, building a new mine takes an average of nearly 29 years. This positions the US as the second-longest lead time in the world after Zambia, according to S&P Global.

“The longer-term aim of the Trump administration may be for the US to be fully self-sufficient in copper, but mines take too long to develop for this to be achieved in less than a 10-year time horizon,” Jefferies analysts wrote.

Copper has become a symbol of the US struggle to bring new mining projects online. Major projects such as Rio Tinto’s Resolution in Arizona, Northern Dynasty Pebble project in Alaska and Antofagasta’s Twin Metals in Minnesota have all stalled for years in the federal permitting process.

Friedland’s US-focused Ivanhoe Electric (TSX, NYSE: IE) also plans to develop the Santa Cruz copper mine in Arizona.