The American Auto Industry Faces Additional Headwinds as Trump Announces Copper Tariffs
Last week, Trump announced that a 50% tariff would be imposed on copper imports from August 1st. This announcement raised concerns, particularly among auto manufacturers and suppliers, as the tariffs would make it harder for them to shoulder the rising costs and taxes. In the United States, copper is primarily used in industrial machinery, construction, electrical equipment, and vehicle manufacturing. The red metal is a key component in wiring and motors, with roughly 75% of copper consumed in the country going towards electrical applications like telecommunications, power generation and transmission. Given that the American market greatly relies on the red…