New tariffs on copper raise concerns for water utilities

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New tariffs on copper raise concerns for water utilities

New tariffs on copper raise concerns for water utilities

On July 30, the White House issued a proclamation establishing a new set of tariffs targeting copper products. Under the proclamation, which is summarized in a related fact sheet, the U.S. will impose a 50 percent tariff on semi-finished copper products, including pipes, wires, cables, and fittings, while excluding raw materials such as copper ores, concentrates, and scrap. The Trump Administration enacted the move to reduce reliance on foreign copper supplies, which it has labeled a national security risk.

Additionally, the Trump Administration will impose new tariffs on refined copper, starting at 15 percent in 2027 and increasing to 30 percent by 2028. These measures follow a Section 232 investigation into national security vulnerabilities stemming from the U.S.’s dependence on imported copper. The White House argues that disruptions in foreign copper supply chains could have ripple effects across the economy, including essential infrastructure sectors.

AMWA is closely tracking these developments and will monitor the implementation of copper tariffs to better understand their short- and long-term impacts on utility operations, budgets, and capital planning. Though the tariffs do not apply to raw copper, tariffs will likely have significant impacts on the material procurement costs of semi-finished copper products for water utilities and their contractors. 

For drinking water utilities, which regularly use copper piping and components for distribution systems, these tariffs could increase the cost of materials and capital improvement projects. Of specific concern is the potential impact on water systems already implementing or planning lead service line replacements under the Lead and Copper Rule. Although some systems use plastic alternatives (like PEX or HDPE), many systems still rely on copper as a first choice for lead service line replacements. The material remains a standard in many local codes and engineering specifications due to its long life span, bacteriostatic properties, and tolerance for high pressures and temperatures that alternative materials may not offer. 

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