Your Car Runs on Copper & a 50% Tariff Could Hike up Costs

The current administration is imposing a 50% tariff on imported copper, an essential material in modern vehicle manufacturing. The impact could be felt far beyond the trade floor. From electric cars to traditional gas-powered models, copper plays a major role in how vehicles are built, and price hikes on the metal could ripple straight through to consumers.

Copper may not get as much attention as steel or aluminum, but it’s everywhere in today’s cars. It powers your windows and seats, runs through every wiring harness, and connects nearly all the vehicle’s electronics. It’s even more critical in electric cars, used heavily in motors, battery packs, and charging components.

Here’s a quick breakdown of how much copper is typically used in different vehicles:

• Gas and diesel cars (ICE vehicles): About 50 pounds
• Hybrids: Roughly 80 pounds
• Electric vehicles (EVs): Anywhere from 150 to 200 pounds, depending on the model

It also doesn't stop at the vehicle itself. Charging stations, home EV chargers, and grid upgrades rely heavily on copper. That means this tariff could affect the cars we buy and the infrastructure needed to support them.

What the tariff could mean for automakers

The U.S. imported around $17 billion worth of copper in 2024. With limited domestic supply and growing demand, this 50% tariff places automakers in a difficult position. Copper futures jumped over 13% following the announcement, marking one of the largest single-day spikes in decades. That surge is already leading to higher costs for manufacturers and suppliers.

Auto suppliers are reportedly warning carmakers that their input costs are increasing. Those increases typically don’t stay hidden for long in a tightly priced, low-margin industry.

How does it affect car buyers?

The cost of vehicle production will likely rise, potentially by thousands of dollars. Industry estimates suggest that with current tariffs on steel, aluminum, and copper, material costs could account for up to 9% of a vehicle’s production budget (up from around 5%). That translates to an average added cost of $1,700 to $5,700 per vehicle, depending on where it’s made and how much imported material is used.

Even vehicles made in the U.S. aren’t exempt. Most still rely on at least some imported parts or raw materials. So, whether you’re eyeing an electric SUV or a basic gas sedan, there’s a good chance your next car will cost more than it would have just a few months ago.

EVs, in particular, are expected to have the most significant impact. Some models contain more than 200 pounds of copper, especially those with larger battery packs. Without federal EV tax credits, which have recently been rolled back, the increased costs could put new electric models out of reach for some buyers.

Will this slow down the EV transition?

Potentially. Rising copper prices could delay or disrupt the buildout of charging infrastructure, especially in areas already struggling with supply chain constraints. That would slow the rollout of EVs and make it harder for automakers to hit their electrification goals. For consumers, it could mean fewer choices, longer wait times, and steeper price tags, at least in the short term.

Could the tariffs be reversed?

Some experts believe the copper tariffs may be short-lived, especially if inflation spikes again or political pressure builds. But in the meantime, the uncertainty is creating real consequences for suppliers, manufacturers, and buyers alike.

The bottom line is that a 50% copper tariff may sound like a technical trade policy, but its effects could show up right where it hurts: in the price of your next car. If you're shopping for a gas-powered model or looking to go electric, higher material costs could mean fewer options and more expensive vehicles in the months ahead.

So, if you're planning to buy soon, now might be a good time to start watching prices because copper is about to play a much bigger role in your car's cost.