Automotive executives and industry analysts are warning that such a move could exacerbate existing challenges for car manufacturers and their suppliers. While the tariffs alone might be manageable, the price of copper, a critical component in vehicle manufacturing, has reached unprecedented levels.

Copper is indispensable for creating wire harnesses and powering electric vehicle motors, making its availability and cost a major factor in automotive production. The U.S. market relies heavily on imported copper, aluminum, and steel.

Experts note that developing new domestic production capacity for these essential metals is a lengthy process that could take years. Consequently, consumers of copper are finding themselves in a competitive scramble to secure supplies from a restricted pool of providers, which further contributes to price increases.

The confluence of these factors – potential tariffs coupled with already high and rising copper prices – presents a significant hurdle for an industry striving to maintain affordability and navigate complex supply chains.