The proposed 50% tariff on imported copper by the United States, effective August 1, 2025, is causing significant concern in India’s fast-growing electronics and semiconductor sectors. Although some experts believe the direct impact may be limited due to India’s low copper exports and copper-deficient status, the wider effects on global supply chains and increasing material costs present a major challenge.
The tariff announcement has already led to a more than 12% rise in global copper prices, hitting record levels above $12,330 per metric ton. This increase is particularly troubling for the electronics industry, as around 70% of the global copper supply is used in electrical and communication technologies.Â
Indian electronics manufacturers, who depend heavily on imported copper for essential components such as printed circuit boards (PCBs) and wiring, are now facing the likelihood of significant cost hikes. PCBs, which generally consist of about 20% copper by weight, are very sensitive to these price changes.
Industry leaders caution that the new tariffs could disrupt existing supply chains, compelling Indian firms to reassess their sourcing strategies, look for local suppliers, or consider alternative materials. There are also growing fears that this measure could hinder India’s ambitious chip manufacturing initiatives and raise the costs of semiconductor projects, especially given the country’s reliance on imported high-purity copper and the current absence of large-scale domestic production of semiconductor-grade copper.
Although India imports more copper products than it exports, its strong domestic demand—fueled by industries such as renewable energy, electric vehicles (EVs), and infrastructure development—could help cushion the effects of decreased demand from the U.S. G. Kishan Reddy, the Union Coal and Mines Minister, has indicated that India is evaluating the possible repercussions of U.S. tariffs on copper.
Additionally, the Ministry of Electronics and Information Technology (Meity) is reportedly in talks with the Commerce Ministry to investigate strategies for mitigation.
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