Trump's 50% tariffs on copper may not impact India

MUMBAI: The proposed 50% import duty on copper by US President Donald Trump is expected to have minimal impact on India due to its limited exports to America. Hindalco, the nation's largest copper manufacturer, does not send any copper shipments to the US owing to the huge domestic demand. India's copper exports to the US are under $300 million.

Copper, used in wires, cables, power transformers and electric motors, sees robust domestic demand, particularly due to the country's focus on renewable energy and electric vehicles, according to industry experts.

The annual copper consumption in India is about two million tonnes, while the exports to the US is a mere 30 tonnes.

India faces copper resource scarcity, resulting in minimal export volumes, industry experts said. The nation became a copper importer following the shutdown of Vedanta's copper facility in Thoothukudi, Tamil Nadu, in May 2018. During FY25, India's copper imports was about $11 billion.

India's copper requirements are projected to double by 2030, prompting the government to modify the MMDR Act and implement a composite licensing system for copper blocks. Since 2015, five copper mineral blocks have been auctioned, with 54 copper exploration projects currently underway nationwide.

The domestic copper usage pattern shows building construction at 24%, infrastructure at 19%, industrial sector at 17%, consumer durables at 12%, transportation at 11%, and other sectors at 17%.

Industry experts said that US copper consumers will face significant impact, as imports fulfil over 50% of their requirements, primarily sourced from Chile, Canada and Peru.