Navigating Rising Costs from the Copper Tariff

As of August 1, 2025, the U.S. has officially implemented a 50% tariffs on semi-finished copper products—including copper foil, wires, cables, connectors, and other copper-intensive components used extensively in electronics manufacturing. The tariff applies specifically to the copper content of these products.

This change will significantly elevate costs across the electronics supply chain:

• PCB Fabricators are particularly exposed, with copper often accounting for upward of 60% of PCB value. Many of these boards use copper foil as a foundational layer that’s etched away during production.
• After the announcement, U.S. net copper futures prices saw a dramatic drop—over 17%, and even up to 20% intraday—as markets rapidly repriced in light of the finalized scope excluding raw materials like ore and scrap.
• The Global Electronics Association warned that the tariff could delay investments, reduce competitiveness, and threaten jobs within the industry—particularly without scalable domestic copper supply.

Why OEMs and Electronics Buyers Should Act Now:

1. Material Cost Shock – Expect sharp material cost increases for PCBs, cables, connectors, and wires due to the steep tariffs on copper components.
2. Supply Chain Strain – OEMs relying on imported copper-intensive parts must re-evaluate sourcing strategies immediately.
3. Proactive Measures:

The tariffs present a critical pivot point—companies with agile procurement strategies will manage costs and execution better.

If your supply chain includes copper foil, PCB boards, electrical wiring, or related components, it’s time to reassess. Let’s talk if you want help modeling the impact on your BOMs or exploring adaptive sourcing strategies.

Talk to us now: https://cms.vexos.com/contact-us/