Kevin Hassett: Trump's 50% tariff on copper imports aims to prepare for US for future 'time of war'
The White House Economic Council Director is defending President Donald Trump's decision to impose a 50% tariff on copper imports.
In an interview on ABC's "This Week," Director Kevin Hassett pointed to the importance of the U.S. being self-sufficient when it comes to key resources.
"The bottom line is that if there is a time of war, then we need to have the metals that we need to produce American weapons," Hassett said on the show on Sunday.
"And copper is a key component in many American weapon sets. And so as we look forward to the threats that America faces, the president decided that we have plenty of copper in the US, but not enough copper production. And that's why he's taken a strong step," he said.
TRUMP PLEDGES 50% TARIFF ON COPPER IMPORTS
Trump made the announcement last week, during a Cabinet meeting in front of the press. He linked the move to his America First policy of rebuilding industrial supply chains and forcing companies to source materials domestically.
"Today we're doing copper," Trump said while noting that imported steel and aluminum already face 50% tariffs, while cars and car parts have 25% tariffs.
US MINERS EYE COPPER COMEBACK AS DEMAND RISES
The duties on their own may be manageable, but prices of the metal vital for making cars, in particular in wire harnesses and in motors for electric vehicles, have soared to record highs, according to Reuters.
Trump did not specify whether the tariff applies to all countries or selected ones. Chile is the largest copper exporter globally. The U.S. has a free trade agreement with Chile, but a blanket tariff could override it unless exceptions are carved out.
CLICK HERE TO READ MORE ON FOX BUSINESS
Trump's announcement of the tariff propelled prices on U.S. platform COMEX to a record $5.6820 a pound or $12,526 a metric ton, a premium of more than $2,920 a ton over the price on the London Metal Exchange, currently around $9,600 a ton, which the market uses as the global benchmark. The rate is effective August 1.
FOX Business' Michael Dorgan and Reuters contributed to this report.