Example
A Canadian manufacturer exports an industrial junction box to the U.S. The product includes:
- 30% copper by value, sourced from Chile
- 40% steel, sourced from South Korea
- 30% Canadian-origin components and assembly costs in Canada
| Component | Value (USD) | Tariff applied | Estimated duty (USD) |
|---|---|---|---|
| Copper content | $300 | 50% | $150 |
| Steel content | $400 | 50% | $200 |
| Canadian content | $300 | 0%* | $0 |
| Total | $1,000 | $350 |
*Assumes the junction box is USMCA/CUSMA compliant
Even if the product qualifies as USMCA-originating, the 50% tariff still applies to the value of foreign copper, and other duties may apply to non-originating steel. Importers must be prepared to declare copper and steel values clearly, with supporting documentation on file.
What are the business implications of the copper tariff?
The copper tariff introduces both direct and indirect cost impacts, such as:
- significant landed cost increases for copper-intensive components and inputs;
- strict content declaration requirements, with U.S. Customs and Border Protection (CBP) enforcement and penalties; and
- non-copper materials within affected articles remain subject to other tariffs.
Similar to the steel and aluminum tariffs, there is no drawback relief, and importers must be prepared to document copper value separately from other content.
Which businesses are most affected by the copper tariff?
The measure applies to all countries exporting covered copper products to the U.S., including manufacturers, exporters, and importers involved in:
- primary copper forms (cathodes, bars, wire);
- semi-finished copper components; and
- electrical, construction, and industrial goods with a high copper content.
No country-based exemptions have been announced; however, scrap copper and U.S. domestic status materials are excluded.
Six immediate actions to respond to the new copper tariffs
With enforcement already underway, businesses involved in U.S.-bound copper trade should take immediate steps to pivot where possible. We recommend the following actions:
Importers should not wait to take action. These requirements are in effect, and any errors in copper content reporting may result in financial and operational consequences.
Importers have always been responsible for understanding the composition and origin of the goods they enter, but that obligation is more visible now than ever. Accurate documentation, supplier transparency, and traceable copper sourcing are no longer just best practices—they are essential to avoid penalties and preserve market access under this new tariff regime.
Improve your tariff strategy
With trade policies constantly evolving, a strong tariff management strategy helps you stay agile, competitive, and able to weather unexpected shifts with confidence.
Our tariff readiness hub offers guidance and strategic advice to help you develop a resilient approach to navigating shifting trade tariffs.
How BDO can help
The copper tariff introduces a new layer of cost and complexity for Canadian exporters navigating U.S. industrial and border trade measures. Now is the time to verify your classifications, assess exposure, and ensure internal systems are prepared to meet the new declaration expectations.
Our hands-on team supports clients with tariff modelling, copper content analysis, classification reviews, and customs compliance planning. Contact a BDO advisor to understand how this measure affects your products and supply chain.
The information in this publication is current as of Aug. 1, 2025.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.