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Copper Price Surge Raises Alarms for Electronics
July 15, 2025 | Global Electronics Association Advocacy and Government Relations TeamEstimated reading time: 1 minute
The copper market is experiencing major turbulence in the wake of U.S. President Donald Trump’s announcement of a 50% tariff on imported copper effective Aug. 1. Recent news reports, including from the New York Times, sent U.S. copper futures soaring to record highs, climbing nearly 13% in a single day as manufacturers braced for supply shocks and surging costs.
With limited domestic smelting and refining capacity, other news outlets warn that the short-term impact of the tariff would be higher costs for critical industries, including electronics, which depend on copper for circuit boards, wiring, power systems, and thermal management.
Copper is a foundational material in electronics manufacturing, and nowhere is this more evident than in the production of PCBs. Copper is used at nearly every stage of the board-building process:
- Copper-clad laminates (CCL): Base materials for PCBs consist of dielectric substrates bonded with sheets of copper, which form the conductive layers. A multi-layer PCB may contain several ounces of copper per square foot, a figure that grows in high-density or power-intensive designs.
- Etching and trace formation: The copper layers are chemically etched to form the signal traces that connect components.
- Plated through-holes and vias: Copper is deposited via electroplating to create vertical connections across layers, an especially copper-intensive step.
- Power distribution and ground planes: Copper planes handle power distribution and act as return paths for high-frequency signals, essential for system performance.
- Thermal dissipation: In power electronics and RF devices, copper helps pull heat away from hot components, contributing to system reliability.
The problem is that electronics-grade copper, often in the form of rolled or electrodeposited foil, high-purity cathodes, and specialized plating solutions, is not easily substitutable and has few domestic sources. Nearly all U.S. PCB fabricators and assemblers import copper materials or precursors, frequently from Asia, including countries now affected by the tariff. The electronics industry, particularly advanced manufacturing segments like automotive, aerospace, telecommunications, and defense, could see ripple effects from tariff-driven copper inflation.
The Global Electronics Association is monitoring the situation closely and urging the administration to exempt electronics-grade copper and associated materials from the tariff list. Meanwhile, manufacturers should assess potential cost impacts and explore supply diversification, recycling strategies, and material substitutions.
The Global Electronics Association would like your help gauging how proposed copper tariffs could impact U.S. electronics manufacturing. Take the survey now.
To learn more, contact Richard Cappetto, richardcappetto@electronics.org.
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