NEMA Urges Balanced Approach to Semi-Finished Copper Goods & Copper Derivative Tariffs
Few industries in the United States stand to feel the impact of the Trump Administration’s proposed 50% tariff on semi-finished copper goods than the electrical market. Last week, Debra Phillips president and CEO of the National Electrical Manufacturers Association (NEMA) issued the following statement last week in response to the propised 50% tariffs on semi-finished copper goods and copper derivatives:
“Copper is fundamental to all parts of the U.S. economy. From homes to hospitals to transit systems to industry – our connected society relies on copper. Copper is a critical component of electrical equipment, essential to the grid, defense, aerospace, manufacturing, maritime and medical industries.
“The Trump Administration has rightly prioritized focusing on copper as a critical resource for this country. Copper is vital to growing U.S. manufacturing, achieving American energy dominance, and leading the world in artificial intelligence. Copper is an essential input to already strained electrical system supply chains serving America’s growing demand for energy, AI and grid capacity, including transformers, switchgear and gas turbines.
“We recognize the national security imperative of a robust U.S. copper industry, which needs to build capacity over time. In 2023, the United States faced a domestic copper supply shortfall equal to 35% of total demand. In addition to increasing domestic copper mining to close our supply gap, building copper smelting and refining capacity is also required for derivative copper product manufacturing. To achieve each of these outcomes, in addition to adding manufacturing and grid assets to serve our growing domestic needs, the United States must urgently and substantially reform its permitting system, and NEMA members look forward to working with the Administration on this critical dependency.
“To assure that the U.S. does not lose ground on copper-reliant goals of winning the AI race, boosting grid reliability, onshoring manufacturing, and capitalizing on our energy assets, NEMA urges the Administration to pair its tariffs with offsets or incentives for companies investing in U.S. manufacturing, making copper products in America and contributing to our power infrastructure.
“These offsets and incentives support the goal of bolstering U.S. copper supply chains while domestic capability is being developed.
“As we navigate the path forward, NEMA and its members stand ready to work with the Administration on a balanced approach that ensures copper policies enhance – not hinder – these priorities. Copper is not just a commodity; it is a strategic asset that underpins the technologies and infrastructure critical to U.S. economic competitiveness and national security. “We look forward to engaging constructively with the Administration to identify targeted solutions that protect vital supply chains, promote domestic investment, and ensure the electrical manufacturing sector can continue driving American innovation and growth.”