50% Levy on Metal Not So Big Threat

Firms to focus on domestic sales as demand soars

- SURYA SARATHI RAY

US President Donald Trump's proposed steep 50% tariff on copper may only have a modest impact on import-reliant India's outbound shipments of the metal. Surging domestic demand from both traditional and emerging sectors such as electric vehicles (EV) and renewable energy (RE), coupled with a sharp fall in domestic production, has already dented India's capacity to export copper.

In FY25, India's total exports were worth $2.32 billion, with 17% of it going to the US. However, India's imports in FY25 stood at a whopping $10.65 billion. In fact, with domestic exploration of the mineral stagnating, India meets 95% of copper concentrate needs through imports, mainly from Indonesia and Chile, to produce refined copper. India turned a net importer of refined copper following the closure of Vedanta's 0.4 million tonne per annum (MTPA) Sterlite Copper's Thoothukudi plant in May 2018. The country's refined copper usage rose from 0.489 MT in 2019 to 0.840 MT in 2024, growing at a CAGR of 13.15%. Large public investments in infrastructure, a shift towards RE and growth in the automotive and EV sectors are fuelling the growth in demand.