Trump's copper tariffs pile more metal misery on US car industry
The duties on their own may be manageable, but prices of the red metal vital for making cars, in particular in wire harnesses and motors for electric vehicles, have soared to record highs.
The US market is heavily reliant on imported copper, aluminium and steel, and developing new capacity could take years so users are scrambling to buy metal from a limited number of suppliers, spurring price rises.
Added to import tariffs on the metals, and higher prices in the US, the extra costs are compounding the financial strain on carmakers and parts suppliers, interviews with a dozen executives, industry analysts and experts show.
Carmakers have been relying on inventories to avoid raising prices, but could be forced to pass on mounting import tax costs to consumers.
Some, including Ford and Toyota, have announced hikes to mitigate other Trump-induced tariffs, while Porsche expects a €300m (R6,285,306,000) hit to results from tariffs for April and May alone.
"This (a copper tariff) complicates a difficult situation" for the car industry, said Daan de Jonge, lead analyst for copper demand and prices at Benchmark Mineral Intelligence.
Trump's announcement of the tariff ast week propelled prices on US platform Comex to a record $5,682 (R102,044) a pound (0,453kg) or $12,526 (R225,018) a metric ton, a premium of more than $2,920 (R52,459) a ton over the price on the London Metal Exchange, around $9,600 (R172,469) a ton, which the market uses as the global benchmark. The rate is effective from August 1.
The US Midwest duty-paid aluminium premium paid on top of the benchmark LME price for physical delivery has tripled to 60 US cents (R10,71) a pound since Trump was inaugurated.
In the same time, the LME price has slipped 3% to $2,604 (R46,783) a metric ton. US top carmakers GM , Ford and Jeep maker Stellantis declined to comment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
eNCA
17 hours ago
- eNCA
Taiwan 'working around the clock' to strike US tariff deal
TAIPEI - Taiwan's trade negotiators were "working around the clock" to strike a tariff deal with the United States, two weeks before Washington's deadline. Donald Trump has given his trade partners until August 1 to reach an agreement with the White House or be hit with his threatened levies. The US president has so far only announced deals with Indonesia, Britain and Vietnam, alongside an agreement to temporarily lower tit-for-tat tolls with China. Taiwan faces a 32 percent tax and possible duties on semiconductor chips, which are a key driver of the island's economy. "Our negotiators are literally working around the clock to strive to reach an agreement on reciprocal tariffs," Taiwanese Vice President Hsiao Bi-khim told journalists in Taipei. "We are certainly aiming to reach an arrangement by August 1." Trump in April imposed a 10 percent tariff on almost all US trading partners, while announcing plans to eventually hike this level for dozens of countries. But days before the steeper duties were due to take effect on July 9, he pushed the deadline back to August 1. Hsiao said Friday that Taipei wanted a trade deal with Washington that "will benefit both sides". "The United States is indeed a very important trade partner for Taiwan," Hsiao said. Washington also "needs Taiwan in supporting resilient supply chains, in supporting manufacturing and some high-end technologies". "We have really counted on each other in recent years in developing our technologies, our economies and growth and prosperity," Hsiao said. Taiwan is a global powerhouse in chip manufacturing and Trump has previously accused the island of stealing the US semiconductor industry. Around 60 percent of Taiwan's exports to the United States are information and communications technology, which includes chips.
IOL News
18 hours ago
- IOL News
Luxury vehicle threshold for ministers, premiers raised to R1. 1m
Finance Minister Enoch Godongwana and the National Treasury have increased the limit for purchasing of official vehicles for ministers, their deputies, premiers and MECs to R1.1 million from R800,000. Image: Independent Newspapers Ministers and their deputies in President Cyril Ramaphosa's Government of National Unity (GNU) executive can now buy luxury official vehicles valued up to R1.1 million after the National Treasury increased the limit from R800,000. National Treasury director-general Dr. Duncan Pieterse revealed the increase in an instruction dated July 11, 2025, and which came into effect on Tuesday this week. Late former finance minister Tito Mboweni announced the R800,000 cap (inclusive of value-added tax [VAT], maintenance plans and security upgrades) for official cars delivering the medium-term budget policy statement as part of government-wide cost-containment measures. Treasury increased and adjusted the R700,000 threshold to R800,000 in the 2019/20 financial year. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Pieterse said Mboweni's successor Enoch Godongwana is required, in terms of the guide for members of the executive (formerly the ministerial handbook), to consult his police, transport and state security counterparts to annually adjust and set the cost limitation for vehicles procured by members of the executive, who also include premiers and MECs. 'The minister (Godongwana) has adjusted the price limit for official vehicles from R800,000 to R1.1m inclusive of VAT, maintenance plans and security upgrades with effect from the date of this Treasury instruction,' stated Pieterse. National and provincial government departments will provide details of all acquisitions related to the costs of vehicles procured for official use by members of the executive in their annual reports at the end of each financial year. Treasury warned members of the executive and departments against purchasing vehicles of higher prices than the set price limit. 'Members of the executive are further prohibited from making personal additional financial contribution or through any form of creative or negotiated trade-in value to purchase a vehicle of a higher price while technically not exceeding the set price limit,' reads the instruction. In addition, the instruction prohibits avoiding compliance by leasing vehicles of a higher threshold in lieu of a direct purchase and subverting the guide's provisions and the price limits by leasing through other means such as the Fleet Management Trading Entities or similar arrangements. The guide sets out conditions as temporary arrangements under which hiring of vehicles may be considered in cases where official vehicles of a similar make and model are not available as may be purchased by departments. This is not the first time Treasury has increased the threshold for official vehicles. In September last year, Pieterse granted a deviation for the Eastern Cape provincial government to proceed with the purchase of a vehicle for official use by members of its executive limited to R900,000 inclusive of VAT, but excluding security features not exceeding a R100,000. At the time, provincial departments were advised to liaise with the SA Police Service for the fitment of security features. ActionSA MP Alan Beesley described the increase in the price threshold for official vehicles for members of the executive as simply unacceptable. 'With close to 50% of households going to bed hungry tonight, the luxury lifestyle of the executive is morally incomprehensible. Under the GNU, we have a bloated cabinet whose perks continue to increase,' he complained. Beesley asked: 'How can the Cabinet tell hard-pressed South Africans to tighten their belts when their own belts are getting considerably looser? It is wrong on so many levels'. He added that corruption comes in many forms, including the systemic abuse of taxpayer's money. ActionSA has introduced the Enhanced Cut Cabinet Perks Bill to amend the Independent Commission for the Remuneration of Public Office Bearers Act to have regard to prevailing economic conditions. Build One South Africa (BOSA) leader and chairperson of Parliament's standing committee on Appropriations, Dr. Mmusi Maimane, said the GNU is fast becoming a patronage network. 'It is not working for the people but serving politicians. Compounding the issue is a bloated executive, VIP protection, a R3 billion expenditure meaning the priority is not on education or economic growth. "We will as BOSA and the appropriations committee continue to fight against such excesses and will be ensuring National treasury accounts for such items,' promised Maimane. BOSA has proposed a drastic reduction in the size of the bloated Cabinet, capping of ministerial perks and a significant cut to wasteful VIP expenditure as well as merging or eliminating underperforming departments that have failed to deliver value to the public.
The Citizen
19 hours ago
- The Citizen
Suzuki Grand Vitara keen to show why its the grandest of them all
The GV badge made its return to the Suzuki stable in 2023 as the brand's flagship SUV. Our Suzuki Grand Vitara is clad in bicolour Splendid Silver with black roof and side mirrors. Picture: Jaco van der Merwe Our popular Suzuki Fronx compact crossover SUV departed our long-term fleet in June after a six-month stay, making way for its bigger sibling the Grand Vitara. As the Vitara part naming has been applied in various of the Japanese manufacturer's products, a quick run-down of its history is in order. Local history at least, as it is much less complicated than its global history. South Africans first encountered the nomenclature in Grand Vitara guise when Suzuki opened its local doors in 2008. This badge eventually made way for the Vitara and for a while was offered alongside the smaller Vitara Brezza. But then Maruti Suzuki in India, which manufacturers the car in collaboration with production partner Toyota Kirloskar Motor, stopped exporting the second generation which was renamed to Brezza. ALSO READ: Suzuki Grand Vitara makes grande return to Mzansi Suzuki Grand Vitara returns The export void was filled with the reintroduction of the Suzuki Grand Vitara badge, albeit it is a bigger car than the Vitara Brezza was. The Grand Vitara is 4 340mm long, where the Vitara Brezza conformed to India's tax friendly sub-four metre rule. Since the Grand Vitara's reintroduction just over two years ago, the Vitara has since been dropped from Suzuki's portfolio. This left the GV as the manufacturer's flagship SUV, with the Fronx crossover SUV coming on board as a spiritual replacement for the Vitara Brezza. The Suzuki Grand Vitara GLX rides on 17-inch machine polished alloy wheels. Picture: Jaco van der Merwe Over in the Toyota stable, the Grand Vitara's production sibling has kept the Urban Cruiser moniker which was also used for its own version of the Vitara Brezza. The Starlet Cross has joined as Toyota's version of the Fronx. The Citizen Motoring's long-term Suzuki Grand Vitara in GLX automatic trim is at R453 900 the second most expensive model in the line-up after the top-of-the-range mild hybrid all-wheel drive variant which comes at a R99 000 premium. But as both these two is kitted out in GLX trim, our tester is currently the best-specced Suzuki product money can buy barring the mild electrical assistance and all-paw grip. Familiar petrol engine Up front is the familiar KB15B 1.5-litre naturally aspirated petrol engine that features in so many of Suzuki's local cars and is in our opinion one of the reasons for their remarkable sales success in recent years. It produces 77kW of power and 138Nm which is sent to the front wheels via four-speed automatic transmission. The dated box isn't everyone's cup of tea comparted to the easy-shifting five-speed manual. But it's the job done just fine if you are not in a hurry. ALSO READ: PODCAST: Why Suzuki Fronx stays ahead of Toyota Starlet Cross Suzuki claims that it will sip six litres per 100km which we'll put to the test over the coming months. While our GV does not feature all-wheel drive, its ground clearance of 210mm is the same as the go-anywhere Jimny. Suzuki says the seats, suspension and electric steering have been created for a comfortable ride on rough and uneven surfaces. In GLX trim, the Suzuki Grand Vitara comes standard with 9-inch infotainment system. Picture: Jaco van der Merwe The GV features good looks, which according to the manufacturer pays homage to the original Grand Vitara. Exterior highlights include a multi-level grille flanked by three-point LED daytime running lights and a rear three-dimensional LED light bar. GLX specific silver roof rails and 17-inch machine-polished alloys round off the picture. Loads of features Our tester is finished in bicolour which combines Splendid Silver paintwork with black roof and side mirrors. Inside, the GLX features full leatherette trim and 9-inch infotainment system with wireless Apple CarPlay and Android Auto. Plus 360-degree surround view camera, wireless charging tray, head-up display, keyless start/stop, ambient lighting and panoramic sunroof. Safety comes in the form of six airbags, electronic stability control, ABS with EBA, hill-hold assist and rear parking sensors. The Suzuki Grand Vitara comes standard with six-year/90 000 km service plan and five-year/200 000 km warranty.
