Trump's copper tariff policy has intensified the cost pressure on the US automotive industry
July 15, 2025
According to foreign media reports, US President Trump's decision to impose a 50% tariff on imported copper is causing strong concerns in the US automotive industry. This policy will lead to a further increase in the already record-high copper price in the United States, putting more severe cost pressure on American automakers and parts suppliers that rely on imported raw materials. Fluctuations in metal prices directly affect production costs. Analysts from Benchmark Mineral Intelligence, a consulting firm, pointed out that on the basis of the current tariffs, steel, aluminium and copper already account for 5% of the production cost of automobiles in the United States. If the 50% copper tariff takes effect, this proportion may rise to 9%. It is estimated that the average tariff cost for each car manufactured in the United States will increase by $1,700, while the cost of cars imported from Canada and Mexico will rise by $3,500, and the cost increase for cars imported from other regions will be as high as $5,700.
