Tariffs, Trade, and Future Prices: What’s Happening with Copper and Aluminum?
Tariffs, Trade, and Future Prices: What’s Happening with Copper and Aluminum? When Trump imposed tariffs on steel and aluminum in 2018, it led to higher raw material costs in the automotive industry, squeezing profit margins and reducing profitability. If a similar situation unfolds now with aluminum and copper, it could hit industries hard — especially electric vehicles and renewable energy, which heavily rely on these metals. The US is increasing control over the metal market to boost local production and cut the trade deficit. The Trump administration has imposed a 10% tariff on Chinese imports and a 25% tariff on all imported steel and aluminum, set to take effect on March 12. A tariff on copper is also being considered in the near future. But what does this really mean for the market – and for the prices of these critical raw materials? Findings from 2018 suggest that tariff increases did not achieve the intended goal of reducing the US trade deficit. Instead, they led to hi...