The threat of President Trump this week targets a significant metal to impose 50% tariff on US copper imports that are widely used in many products and industries. It can lead to high prices for everything from devices and electronics to cars and home repairs, saying by economists and industry experts.
Although Mr. Trump has not yet officially announced a metal tariff, the cost of copper was shot on Tuesday, which reached the record high due to the danger alone.
Ryan Young, a senior economist at the competitive enterprise institute, a nonpartison think tank, said that copper is an integral component in electrical wiring and plumbing, as well as being used as heat conductors in radiators and home appliances. He worries that a heavy copper tariff will trigger inflation.
“All this is bad news all around,” Young said about Mr. Trump’s proposed copper tariff. “If the cost of companies increases, they pass them with consumers, so we will see high prices to repair the house and anything that uses copper.”
Copper tariffs can also be made to keep the country’s electric grid more expensive and increase domestic energy costs, Young said. “This will negatively affect the power industry and anyone using electricity.”
Mr. Trump has said that tariffs provide financial incentives to increase domestic production, including important materials such as copper, and help to create manufacturing jobs.
White House spokesperson Kush Desai, in a statement, told CBS Manivatch, “America may not depend on foreign imports of copper, which is essential for major military hardware, infrastructure and everyday electronics.” “Trump administration is committed to re -starting manufacturing which is important [to] With a two-dimensional approach of the tariff, a complete suit of our national and economic security and deragulation such as a complete suit and a pro-goth tax of a large, beautiful bill. ,
Wave effect
The largest users of copper – and therefore are exposed to the most tariff growth – according to industry data, cover everything from construction to solar panels such as semiconductors, electric vehicles and renewable energy components.
Copper Demand and Price Lead Analyst, Dan de Jonj said in a research note that “the cost of a new infrastructure will have unavoidable wave effect on the cost of new infrastructure, cost of housing fridge, car, air conditioning.”
For consumers, this means that the cost of refrigerators and air conditioners, as well as EVS, if this 50% tariff becomes effective, will probably increase, according to analysts.
“Copper is an important element in the development of semiconductor and electric vehicles. And due to the declaration of tariffs, prices increased quite dramatically, so you can tell that it is a very big thing.” “President Trump chose copper, because it is such a big thing for many important things.”
Carving for major partners?
The US depends a lot on copper imports from Chile, followed by Canada. According to Morgan Stanley Research, the US’s pure copper imports found 53% of the US demand for copper last year.
Experts noted that Mr. Trump is not sure of extending duties on copper, saying that his proposal could be more targeted to achieve concession from exporters.
“These are the two examples that America can offer any quota or export restraint relief as part of a broad deal,” UBS’s main investment strategist Kurt Reemon told CBS Manivatch. They said
Although the US may increase domestic copper production, the output will take a long time, Reiman said. “We are not ready. The mines have to be excluded, and this is usually a multi-year process.”
This week after the threat of sectoral tariff after Mr. Trump, new tariff rates were announced On 20 nations It has not yet reached trade agreements with the US and said that it would be effective on August 1. He underlined the new rates, posted in almost identical letters on his true social media platform, as a 90-day stagnation on the so-called “mutual” levy Set to end On Wednesday.
Contributed to this report.
