U.S. President Donald Trump's threat of a 50% tariff on copper imports is raising alarm in the U.S. auto sector, as it could make it even harder for carmakers and suppliers to absorb border taxes and rising costs,

The U.S. accounts for less than 10% of global refined copper demand, but the anticipated tariffs have distorted global trade flows, UBS said. As traders chased the premium between U.S. and London copper prices, copper was diverted from major markets like China and Europe, leading to tighter supply in those regions.

While the cost of copper is going up for American businesses and consumers, the rest of the world is scratching its head while it enjoys a considerable discount on the price of copper.

Copper shipments into the United States are expected to accelerate in the coming weeks in a final scramble to get metal across the border before U.S. President Donald Trump's higher than expected 50% tariff on imported copper takes effect.

President Trump's threatened 50% copper tariffs have boosted prices for the metal in the U.S. far ahead of anywhere else, lifting the premium to roughly one quarter. Copper futures mainly trad

Fears of an upcoming 50% copper tariff have caused a spike in copper prices in the US, though the red metal’s price is falling elsewhere