Copper Tariffs

NEMA weighs in on potential cost to electrical, energy sectors

Just when you thought tariffs were old news, they reappear in both policy and discussion. Specifically, the debate over copper tariffs is heating up recently, with NEMA weighing in on the situation following a visit to Congress.

"Electrical manufacturers need reliable, affordable access to copper today, even as the United States works to expand domestic production for tomorrow," wrote Patrick Lozada, NEMA Senior Director of Global Policy, in a July 16 post to the association's online newsroom. "New mines and refining facilities require significant capital, skilled workers, regulatory approvals, and years of development. Until domestic capacity can meet demand, manufacturers will continue to depend on refined copper and other critical inputs from trusted trading partners around the world."

NEMA President and CEO Debra Phillips delivers testimony during an oversight hearing by the House Natural Resources Committee Subcommittee on Energy and Mineral Resources entitled “Powering the 21st Century with American Copper“-NEMA photo

Copper's vitality is well-known to EA readers. It is found in transformers, transmission and distribution lines, switchgear, motors, data centers, advanced manufacturing facilities, electric vehicles, charging equipment, and the systems that keep homes and businesses operating safely and reliably. 

Demand for all of that equipment is growing quickly, Lozada noted, citing recent data from his organization. NEMA projects U.S. electricity consumption will rise by approximately 55 percent by 2050, driven by data centers, manufacturing, transportation, and broader electrification. 

"Broad or premature tariffs on refined copper could raise manufacturers’ input costs, disrupt established supply chains, and lengthen already significant equipment lead times," Lovada continued. "Those added costs would ultimately affect the transformers, conductors, switchgear, and other technologies needed to strengthen the grid and support growing electricity demand."