New 50% Copper Tariff: What It Means for Manufacturers, MRO Teams, and Supply Chains

Starting August 1, the U.S. will impose a 50% tariff on copper imports—a sweeping move aimed at reducing dependency on foreign copper and revitalizing domestic supply chains. But for automation professionals, OEMs, and maintenance teams, this change could mean higher costs, sourcing headaches, and renewed urgency to plan ahead.

What’s in the Executive Order?

Signed by President Trump, the copper tariff targets:

• Semi-finished copper products
• Copper derivative products
• Copper tubing and wire (commonly used in motors, drives, HVAC systems, and control cabinets)

Exceptions apply to cars and auto parts, which remain under a separate 25% automotive duty. But everything else? It’s going to get a lot more expensive—and fast.

Who Supplies Our Copper?

According to data from the U.S. International Trade Commission, copper imports came primarily from:

Chile and Canada alone accounted for over $10 billion in copper exports to the U.S. in 2024. Mexico, Peru, and Germany also represent significant sources of high-purity copper for wiring and precision components.

What This Means for Automation Customers

If you're maintaining or building automation systems, this tariff affects more than just raw material—it may impact component prices across the board:

• Drives and motors: Higher copper costs will likely raise prices for windings, coils, and busbars.
• Control cabinets: Expect increases on wire harnesses and grounding assemblies.
• Panel builds and retrofits: Copper tubing, connectors, and busways could see long lead times or markup.

Downstream Effects: Cost and Complexity

This isn’t just a trade policy—it’s a shift in your procurement strategy. Here's how it may play out:

Challenge	Likely Impact	What You Can Do
Sharp copper cost increase	More expensive drives, motors, HVAC parts	Stock up on key components early
Disrupted supplier networks	Shortages from top copper-exporting nations	Diversify vendors with U.S.-stocked items
Uncertainty in pricing/timing	Harder to quote jobs or predict project cost	Lock in pricing for large installs now
25% domestic sales requirement (future)	May restrict exports, inflating U.S. prices	Consider surplus copper stock strategies

Industrial Automation Co. Recommendation: Prepare Now

If your factory depends on copper-intensive components, now’s the time to act. We recommend:

• Evaluating critical spares – especially for servo drives, transformers, and HVAC motors
• Consulting your BOMs – identify copper-heavy builds before costs spike
• Contacting us directly – we stock thousands of parts with U.S. inventory—and we ship fast

➡ Need a quote or availability check? Contact us now.

The Real Answer to Tariffs Isn’t Politics—It’s Planning

This 50% copper tariff is just the beginning. Section 232 plans outline even more tariffs by 2028, including:

• 15% duty on refined copper starting in 2027
• 30% duty starting in 2028
• A proposed 25% domestic sales requirement for copper scrap and inputs

Bottom line? U.S. factories must act strategically to stay competitive.

At Industrial Automation Co., we’re here to help you source smarter, plan ahead, and reduce risk—before the price hikes hit your production floor.