Mining billionaire welcomes Trump tariffs on copper
Robert Friedland, the billionaire founder of Vancouver-based Ivanhoe Mines and Ivanhoe Electric, told the BBC the tariffs would help re-establish the US copper mining industry.
US President Donald Trump has already introduced steel and aluminium tariffs and a 50% copper tariff is due to come in on 1 August.
Critics have argued that tariffs are inflationary and will push up prices for American consumers, but Mr Friedland said the president's approach was aimed at strengthening national security by building important industries at home.
US will hike tariffs on copper to 50%, Trump says
Faisal Islam: Trump's tough tariff tactics are getting results
Copper is an essential metal for the modern global economy and green technology in particular. It is used in everything from buildings and power grids to electric vehicles and data centres.
"The new administration in the United States is correctly focused on making sure that the world's largest economy actually has stable access to raw materials at the scale of that economy, rather than being dependent on far-flung and potentially unstable jurisdictions," he said.
Last year, the US imported about 50% of the copper it used. The biggest sources were Mexico, Chile and Canada - which has hit out at the move.
"We'll fight against it - period," said Canadian Industry Minister Melanie Joly.
When Trump announced the tariffs on social media earlier this month, he said they would allow the US to "once again, build a dominant copper industry".
Global demand is soaring thanks to growing industrialisation and the surge of new technologies that rely on electricity.
The International Energy Agency (IEA) is warning that without more mining, global copper demand will be 30% higher than supply by 2035 as demand from China and India continues to soar.
US demand spurred by the impending tariffs has pushed the price of copper to record highs - a trend that Mr Friedland warns will only increase due to the metal's scarcity.
However, those higher prices risk broader economic damage such as delays in construction projects, according to Ewa Manthey, who is a commodities strategist at the Dutch bank ING.
"Copper is a foundational input in everything from electronics to manufacturing and construction. When prices rise, so do production costs which can feed into broader inflation," Ms Manthey said.
She pointed out that pressure came as the US central bank was already resisting Trump's calls to cut interest rates amid its ongoing struggles to get inflation back to its 2% target.
The US was once the world's biggest producer of copper and still has plenty left in the ground, but has fallen behind Chile, the Democratic Republic of Congo and Peru.
Its refining capacity has also been falling. In 1997, there were 11 smelters, and now there are only three, which means American copper has had to be sent abroad for processing. Meanwhile, China's share of global refining capacity has grown to 44%.
A report commissioned by industry body the Copper Development Association concluded that making the most of American reserves required increasing processing capacity in the US.
Mr Friedland, who has joint US and Canadian citizenship, made most of his mining fortune from his company's vast operations in southern Africa and the Democratic Republic of Congo, but he is working on opening what will be America's first new copper mine in more than a decade.
The Santa Cruz project in Arizona is expected to start production in 2028 and will, he says, deliver copper that is so highly refined it can be used in electronics, modern cars and data centres without requiring processing at a smelter.
And with computer chip maker TSMC and electric car manufacturer Lucid Motors coming to Arizona, Mr Friedland thinks the copper produced will never leave the state.
Other companies are also racing to mine more copper in the US but have been held back by permit delays and legal challenges.
The billionaire insists Trump's desire to bring manufacturing jobs back to the US will mean even more raw materials are needed and there will be a "continued scramble" for metals.
But others are doubtful Trump's economic shake-up will be good for growth.
"For the sake of national security, you may be willing to give up certain amounts of economic efficiency" says Adam Posen, President of the Peterson Institute for International Economics.
However, the wide-ranging tariffs will, he argues, be detrimental to the US.
"That's a very big set of costs to impose on the huge range of people, almost essentially everybody in the US."
Trump says US may not reach trade deal with Canada
Who are the winners and losers in US-EU trade deal?
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
Exclusive-Trump administration to formally axe Elon Musk's 'five things' email
WASHINGTON (Reuters) -The Trump administration plans as soon as Tuesday to formally axe a program launched by billionaire former Trump adviser Elon Musk requiring federal employees to summarize their five workplace achievements from the prior week, two people familiar with the matter said. The Office of Personnel Management, the federal human resources agency that implemented Musk's push to slash the federal workforce, plans to announce the end of the "five things" email to HR representatives across the federal government later on Tuesday, the two people said, declining to be named because the matter was not public. While many federal agencies had already phased out compliance with the weekly email, the move, not previously reported, signals the Trump administration is turning the page on one of Musk's most unpopular initiatives following a dramatic row between the two men in early June. The White House and OPM did not immediately respond to requests for comment. Musk, who spent over a quarter of a billion dollars to help Trump win November's presidential election, led the Department of Government Efficiency's efforts to slash the budget and cut the federal workforce until his departure in May to refocus on his tech empire. Musk initially received a warm White House sendoff from Trump, but then incurred the president's wrath by describing Trump's tax cut and spending bill as an abomination. Trump pulled the nomination of Musk ally and tech entrepreneur Jared Isaacman to lead NASA and later threatened to cancel billions of dollars worth of federal contracts with Musk's companies after the blowup between the two men. The "five things" email, launched by Musk in February to boost accountability, sparked tensions with department chiefs who were blindsided by the weekend email mandating the move. It also fueled confusion among government workers who received mixed messages about whether and how to comply. Reuters reported in March that the White House installed two Trump loyalists at OPM to ensure better policy coordination between the White House and the agency. Scott Kupor, a venture capitalist who took the helm at OPM in July, foreshadowed the end of the initiative last month, describing processing of the weekly response emails as "very manual" and "not efficient." It is "something that we should look at and see, like, are we getting the value out of it that at least the people who put it in place thought they were," he said.
USA Today
19 minutes ago
- USA Today
Worried about AI at work? Avoid these 5 leadership mistakes with your team
Artificial intelligence may be transforming the workplace, but for many employees, it's fueling uncertainty instead of excitement. According to a 2025 Pew Research Center study, 52% of U.S. workers worry AI could disrupt or replace their jobs. And an August 2024 SHRM survey found that nearly half feel unprepared for automation, while 95% say they don't trust their organization to manage the shift in a way that benefits everyone. How managers address these concerns can make or break team morale and productivity. Experts say clear, honest communication is critical, but the wrong message can backfire, fueling fear instead of trust. Whether you're rolling out new tools or just starting the conversation, it's important to engage your team with transparency, context and empathy. Below, two human resources experts break down five common mistakes to avoid when discussing AI with your team and provide guidance on navigating the discussion more effectively. 1. Acting like it's no big deal According to the World Economic Forum, when managers dismiss or avoid discussing AI concerns, they often create bigger problems down the road. 'Business leaders can't bury their heads in the sand and hope for the best,' says Eric Mochnacz, director of operations at Red Clover HR in New Jersey. 'They must have up-front discussions about the benefits of AI in their business, the drawbacks, the potential impacts and the areas where they'll not allow AI usage.' Chad V. Sorenson, president of Florida-based Adaptive HR Solutions, agrees that direct communication is key. 'Employees may feel AI threatens their jobs and may question leaders' motives for introducing AI tools,' he explains. So, 'address the fear and explore how AI can augment workflows and streamline repetitive tasks rather than replace workers.' Takeaway: Don't downplay concerns about AI. Acknowledge employee fears openly and explain how AI will support, not replace, their work. 2. Throwing around 'AI' without defining it AI isn't just one thing. Mochnacz explains that there's a significant difference between using generative AI to enhance email communications and utilizing AI chatbots to manage all customer interactions. Without these distinctions, employees don't understand what to expect from their workplace changes or how they can remain relevant. 'AI is such a buzzword, and leaders haven't taken the time to define it and understand the differences,' says Mochnacz. 'I've been in meetings where people ask, 'Can you do this with AI?' or 'Everyone's talking about AI, so we have to do something with it.'' He emphasizes the importance of clarifying the fundamentals: Takeaway: Don't use 'AI' as a vague catchall. Clearly define what types of AI you're using, what they do and why they matter to your team. 3. Failing to explain the why 'Any time leaders announce a new program or procedure without employee buy-in, there could be fear, skepticism or anger,' Sorenson cautions. Instead of simply telling employees what's changing, explain why the company needs AI. How does it fit into broader business goals? This context helps employees understand their role in the transition rather than viewing it as a threat. 'Ongoing two-way feedback is critical for continued refinement of how teams use AI to improve workflows, processes and results,' notes Sorenson. Takeaway: Don't skip the context. Explain why AI is being adopted and how it supports your team's goals to build trust and buy-in. 4. Overhyping what AI can do 'Leaders promising that AI will handle everything don't have a clear understanding of its possibilities and limitations,' Sorenson says. For instance, AI can help employees understand benefit plans. But it can't handle nuanced harassment complaints or mental health concerns. 'AI systems must be trained to understand when a human must intervene,' he adds. Mochnacz says the problem gets worse when leaders promise capabilities that may never materialize. 'We have no idea what AI is going to be able to do in a month, three months or a year,' he emphasizes. So, it's better to focus on specific, tested use cases rather than grand predictions about AI replacing everything. Takeaway: Avoid making big promises. Focus on what AI can realistically do today, not speculative future capabilities. 5. Leaving people out of the process 'Whenever there's a business, industry or technology shift, involve those it may impact,' stresses Mochnacz. 'Have up-front, direct conversations with your people about their roles and how they see AI helping them be more effective.' A recent MIT Sloan working paper finds that the most successful generative AI deployments consistently involve frontline workers from the earliest stages through rollout. Drawing on over 50 in-depth interviews, MIT researchers demonstrate that when employees help define the problem, co-design workflows, experiment with tools, and shape fair transition policies, not only does adoption improve, but worker productivity and job quality also rise. The key here is framing AI as a collaboration partner rather than a threat. Mochnacz explains that when leaders present AI as a good reality for everyone, employees will engage with the technology. But when the message becomes "prove AI can't replace you," workers resist because it feels like an ultimatum. Takeaway: Don't make AI decisions in a vacuum. Engage employees early and frame AI as a tool to support their work, rather than compete with it. What successful AI communication looks like Sorenson says poor AI communication shows up in obvious ways. You might notice more pushback in meetings, higher employee turnover or a spike in anxious watercooler conversations. These signals suggest that employees feel excluded or uncertain and may be bracing for the worst. In contrast, when communication is clear and inclusive, team engagement improves. 'If your AI communication strategy is successful, employees should engage in the conversation,' Sorenson notes. 'They'll make suggestions to continue to refine its use, and demonstrate an increased productivity level.' Look for those signs of healthy adoption: employees asking questions, suggesting improvements and using AI to work more efficiently. When teams feel empowered, not threatened, you know you've struck the right balance. What is USA TODAY Top Workplaces 2025? Do you work for a great company? Each year, USA TODAY Top Workplaces, a collaboration between Energage and USA TODAY, ranks organizations across the U.S. that excel at creating a positive work environment for their employees. Employee feedback determines the winners. In 2025, over 1,500 companies earned recognition as top workplaces. Check out our overall U.S. rankings. You can also gain insights into top-ranked employers by checking out the links below.
The Hill
19 minutes ago
- The Hill
OpenAI, Google, Anthropic AI models added to government purchasing system
Artificial intelligence (AI) models from OpenAI, Google and Anthropic have been added to a government purchasing system, allowing federal agencies to buy and use the AI products. The General Services Administration (GSA) announced Tuesday that ChatGPT, Gemini and Claude had been added to the agency's Multiple Award Schedule for purchase. 'America's global leadership in AI is paramount, and the Trump Administration is committed to advancing it,' GSA acting administrator Michael Rigas said in a statement. 'By making these cutting-edge AI solutions available to federal agencies, we're leveraging the private sector's innovation to transform every facet of government operations,' he continued. This follows the addition of xAI's Grok to the GSA schedule, which it announced last month after unveiling a new suite of products for U.S. government customers and scoring a Pentagon contract alongside the three other tech firms. The agency pointed to President Trump's AI Action Plan for the new additions to its purchasing system. The AI framework, released last month, called for accelerating AI adoption in the federal government. It specifically advocated for the creation of an AI procurement toolbox managed by the GSA that would 'allow any Federal agency to easily choose among multiple models in a manner compliant with relevant privacy, data governance, and transparency laws.' The recommendations for federal AI adoption represent one small portion of Trump's wide-ranging AI Action Plan, which also called for limiting state and federal regulations, fast-tracking permitting for data center and energy construction and creating export packages of U.S. technology.
