According to foreign media reports, business executives and industry experts recently said that US President Trump announced a 50% tariff on imported copper materials, which has raised concerns in the US automotive industry, as it may make it more difficult for automakers and suppliers to afford tariffs and rising costs.
The U.S. market relies heavily on imported copper, aluminum, and steel, while new construction is being builtCapacityIt can take years, so companies are scrambling to source metal materials from limited suppliers, further driving up prices.
Image credit: Ford Motor
Among them, copper, a red metal that is essential for automobile manufacturing (used for wiring harnesses andElectric vehiclemotors) have surged to a new all-time high.
Consulting firm CRU Group estimates that the average copper consumption per traditional fuel vehicle or hybrid model is about 24 kg, while the copper demand per pure electric model is 59 kg.
This week, after US President Donald Trump said that the United States would impose a 50% tariff on imported copper from August 1, copper prices on the US COMEX exchange soared to a record high of $5.6820 per pound (or $12,526 per metric ton), a premium of more than $2,920 from the current London Metal Exchange (the benchmark price recognized by the global market) of about $9,600 per metric ton.
The additional costs of rising prices are exacerbating financial pressure on automakers and component suppliers.
After a week of sharp fluctuations in copper prices, auto parts suppliers have urgently asked automakers to raise their purchase prices – experts say the surge in raw material costs has exceeded suppliers’ ability to afford.
A source at a major auto parts supplier in the U.S. market said the company has felt a “significant” impact from rising copper, aluminum and steel prices.
The above-mentioned sources said that the rise in raw material prices has brought both commercial friction and structural cost gaps.
Takashi Imamura, executive director of Marubeni Corporation of Japan, said copper tariffs will mean higher costs for American consumers. “When (the U.S. government) reconsiders the damage caused by copper tariffs, I ultimately expect them to lower or eliminate tariffs,” he said. ”
Melanie White, president of suspension component manufacturer Hellwig Products, said steel prices have quadrupled since 2018. Steel tariffs have led to businesses scrambling to source from U.S. suppliers, making it more difficult to secure supplies.
Melanie White said the company had to cut costs by delaying equipment purchases or not filling certain open positions.
Benchmark’s de Jonge said steel, aluminum and copper accounted for about 5% of the production cost of a car in the United States before the tariffs. With tariffs, this percentage rises to 9%.
According to estimates from Cox Automotive and Benchmark Mineral Intelligence on the tariffs implemented and the proposed copper tariffs, the U.S. auto industry will pay an average of at least $1,700 in tariffs for each U.S.-produced car, and $3,500 per vehicle imported from Canada and Mexico that complies with the U.S.-Mexico-Canada Free Trade Agreement. Cars imported from other regions are subject to customs duties of up to $5,700 per vehicle.
In the automotive industry, where margins are already thin, such cost increases can have a significant impact. According to J.D. Power Consulting, the average selling price of a new car in the United States has risen to $46,233 in June.
However, some in the automotive industry are skeptical that copper tariffs will be implemented as scheduled. Trump has repeatedly postponed or reversed tariff threats.
Andy Leyland, co-founder of supply chain specialist SC Insights, said copper tariffs could be short-term because tariffs could exacerbate inflationary pressures, which would put Trump’s Republican Party at risk of losing the 2026 midterm elections.
He also said, “Most Americans don’t really care about foreign policy, inflation is the only real concern that people are really concerned about.” ”
