Copper Tariffs

NFFS and its Government Affairs Committee continue to monitor the Trump administration tariff policies and their impact on foundries and foundry suppliers in the US and Canada. Tariff policy has been evolving on a daily basis over the past week, so the Society continues to track any significant updates and the context of each announcement.

Initially, significant reciprocal tariffs, announced during the April 2^nd “Liberation Day” on most nations of the world, were scheduled to go into effect on July 9^th. This deadline was postponed until August 1^st as the administration continues negotiations with individual governments. In addition, the President announced on July 9^th a 50% tariff on imported copper that would go into effect on August 1^st as well.

This decision was made by the President after receiving a national security assessment. The new copper tariffs are in addition to the already existing 50% tariffs on steel and aluminum imports that went into effect on June 4^th. The administration continues to deploy policy aimed at increasing domestic production of these materials, but it could take decades to build the domestic manufacturing infrastructure to fill the US demand for copper.  News of the impending tariffs caused copper prices to rise beginning on July 9^th. This new tariff could also increase the widening discrepancy that the US is paying to import copper on the open market compared to the rest of the world.  Price increases and sourcing challenges will cause significant issues for US-based foundries.

In additional tariff news, the administration announced a new 50% tariff on goods from Brazil that would also go into effect on August 1^st. Trump cited “unfair trade practices” as the reason, but also indicated that his disapproval of the “witch hunt” against former Brazilian President Boisonaro factored into the decision. Brazil has announced they intend to retaliate if this policy does go into effect. Also, discussions have begun this week on levying significant tariffs against Russia to coerce them into substantive talks to end the war in Ukraine. NFFS will continue to monitor Trump administration tariff policy in the lead up to these new August 1^st deadlines.