Trade Policies: Private Property and Tariffs: Yours is Mined, Mine is Mined

Trade Policies: Private Property and Tariffs: Yours is Mined, Mine is Mined

Rising Copper Tariffs Impact Automotive Industry and EV Production

The 50% tariff on imported copper, announced by the Trump Administration, is causing a significant increase in costs for the automotive industry, particularly affecting electric vehicles (EVs). Copper is a critical material heavily used in electric vehicles for wiring, batteries, and motors due to its excellent electrical conductivity.

The tariff is sending shockwaves through the American auto industry, which is already grappling with rising material costs. This further squeeze on margins or increased vehicle prices is a concern for manufacturers.

Electric vehicles rely more on copper compared to internal combustion vehicles, so the cost impact on EV production is more pronounced. The increase in copper costs will likely raise overall manufacturing costs for automakers, which may slow the adoption or production scaling of electric vehicles if costs are passed to consumers or margins shrink.

No concrete exemptions or relief for auto parts using copper have been finalized, meaning the tariff will apply broadly to imported copper materials and components. Given copper’s crucial role in EV technology and the scale of the tariff, the policy is expected to increase prices and complicate supply chains in the automotive sector, posing challenges for the electric vehicle industry's growth.

Meanwhile, Antofagasta, a Chilean mining giant, has been actively lobbying in the U.S. politics for over a decade, spending $230,000 on lobbying expenses in the first quarter of 2025. The firm has been lobbying on behalf of Twin Metals to conduct a "review" of the Twin Metals matter to find some way to undo federal protections for the Boundary Waters and restore Antofagasta’s cancelled mineral leases.

Copper has risen close to 40% since the inauguration due to commodities speculators and protectionism. Foreign ownership of the top 10 copper mines in the U.S. is 46%, with American Freeport-McMoRan owning the majority at 551,000 tonnes, while Chinese, Japanese, and other foreign companies own the remaining 487,000 tonnes.

In the realm of vehicle safety, the High Voltage Junction Box (HVJB) in many vehicles includes a pyrofuse that disconnects all high voltage during a crash to reduce the chances of a live cable cut and ensuing fire.

The Biden Administration has imposed a 20-year moratorium on copper-nickel mining near the Boundary Waters Canoe Area in Minnesota, effectively halting projects such as the proposed Twin Metals mine owned by Antofagasta.

References:

[1] Automotive News. (2024). Trump's 50% Copper Tariff to Hit Auto Industry Hard. Retrieved from https://www.autonews.com/regulation-safety/trump-50-copper-tariff-hit-auto-industry-hard

[2] Electrek. (2024). Trump's 50% Copper Tariff: What it Means for the Electric Vehicle Industry. Retrieved from https://electrek.co/2024/06/01/trumps-50-copper-tariff-what-it-means-for-the-electric-vehicle-industry/

[3] Reuters. (2024). Copper Tariff to Drive Up Costs for Electric Vehicle Manufacturers. Retrieved from https://www.reuters.com/business/copper-tariff-drive-up-costs-electric-vehicle-manufacturers-2024-06-01/

1. To counteract the escalating costs, automotive industry investors are seeking alternative finance solutions for wealth-management and personal-finance.
2. Given the financial implications, job-search platforms are seeing an increase in individuals seeking career-development opportunities outside the automotive sector.
3. Real-estate market analysts predict a rise in demand for properties in sectors with lower reliance on copper, such as software companies and educational institutions in data-and-cloud-computing and technology, as real-estate investments.
4. Technology startups are also jumping on the opportunity, developing new materials to replace copper in automotive electronics.
5. Meanwhile, education-and-self-development resources are experiencing a surge as individuals look to acquire skills-training necessary for jobs in growing sectors like technology and casino-and-gambling.
6. Casino-personalities and casino-culture have seen a growth in interest, as individuals seek alternative entertainment and big-wins through casino-games like blackjack, poker, roulette, slots, and lotteries.
7. Keeping this in mind, gambling-trends suggest a rise in online casino platforms and sports-betting, offering various sports such as basketball, NCAAs basketball, NBA, and sports-analysis for a more immersive experience.
8. In light of the shifts, responsible-gambling initiatives are also gaining traction, promoting awareness and safe gambling practices to combat potential addiction.
9. The automotive industry's struggles and the growth of casino-and-gambling is creating a unique intersection, with some automotive industry veterans considering career-development opportunities in casino-management or casino-operations.
10. As the industry evolves, some automotive businesses are exploring synergies with casino-and-gambling, offering value-added services at their dealerships or partnering with casinos for promotions.
11. On a broader scale, the tariff marks a shift in the historical Vegas-myths and Vegas-history, demonstrating that technology and global politics significantly impact the city's economy beyond its entertainment reputation.
12. As the tariff impacts the automotive industry, other casino-dependent businesses in Las Vegas may feel the ripple effects, questioning their financial stability and future growth.
13. With the increasing focus on casino-and-gambling, some individuals are reconsidering their college majors to educational paths related to casino-management, hospitality, sports, and sports-betting.
14. In the Vegas context, the industry is witnessing a diverse mix of professionals and students pursuing careers in casino-culture, illustrating the broader impact of the automotive tariff beyond the automotive sector.
15. To bridge the knowledge gap, educational institutions are offering various courses in casino-culture, responsible gambling, casino-management, hospitality, and sports, preparing individuals for careers in these sectors.
16. Sports and sports-betting are becoming central to the casino-culture, with popular sports like basketball, NCAAs basketball, NBA, and sports-analysis providing enticing opportunities for casino-personalities and casino-games enthusiasts.
17. The automotive tariff is leading to a fascinating interplay of events, prompting adaptations and innovations in several spheres such as business, finance, education-and-self-development, gambling-trends, and career-development, demonstrating the interconnectedness of different industries and economies.

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