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SowetanLIVE
2 days ago
- Automotive
- SowetanLIVE
Trump's copper tariffs pile more metal misery on US car industry
US President Donald Trump's threat of a 50% tariff on copper imports is raising alarm in the US car sector as it could make it even harder for carmakers and suppliers to absorb border taxes and rising costs, executives and industry experts say. The duties on their own may be manageable, but prices of the red metal vital for making cars, in particular in wire harnesses and motors for electric vehicles, have soared to record highs. The US market is heavily reliant on imported copper, aluminium and steel, and developing new capacity could take years so users are scrambling to buy metal from a limited number of suppliers, spurring price rises. Added to import tariffs on the metals, and higher prices in the US, the extra costs are compounding the financial strain on carmakers and parts suppliers, interviews with a dozen executives, industry analysts and experts show. Carmakers have been relying on inventories to avoid raising prices, but could be forced to pass on mounting import tax costs to consumers. Some, including Ford and Toyota, have announced hikes to mitigate other Trump-induced tariffs, while Porsche expects a €300m (R6,285,306,000) hit to results from tariffs for April and May alone. "This (a copper tariff) complicates a difficult situation" for the car industry, said Daan de Jonge, lead analyst for copper demand and prices at Benchmark Mineral Intelligence. Trump's announcement of the tariff ast week propelled prices on US platform Comex to a record $5,682 (R102,044) a pound (0,453kg) or $12,526 (R225,018) a metric ton, a premium of more than $2,920 (R52,459) a ton over the price on the London Metal Exchange, around $9,600 (R172,469) a ton, which the market uses as the global benchmark. The rate is effective from August 1. The US Midwest duty-paid aluminium premium paid on top of the benchmark LME price for physical delivery has tripled to 60 US cents (R10,71) a pound since Trump was inaugurated. In the same time, the LME price has slipped 3% to $2,604 (R46,783) a metric ton. US top carmakers GM , Ford and Jeep maker Stellantis declined to comment.
TimesLIVE
3 days ago
- Automotive
- TimesLIVE
Trump's copper tariffs pile more metal misery on US car industry
Suppliers pass on some costs After a chaotic week in the copper market, suppliers to carmakers have asked their customers to pay more for their product because they cannot afford the additional costs, experts said. A source at a major car supplier in the US market said the company had seen "meaningful" impact from elevated copper, aluminium and steel prices. This creates commercial friction and structural cost gaps, said the source, who spoke on condition of anonymity because they were not authorised to discuss the issue publicly. Even before a tariff takes effect, users are paying more for their US copper. Takashi Imamura, an executive officer at Japanese trading house Marubeni said a copper tariff would mean higher costs for US consumers. "When they (the US government) reconsider the damage, my final expectation is they will reduce or eliminate the tariffs," Imamura said. Parts suppliers are feeling the squeeze. Melanie White, president of suspension parts maker Hellwig Products, said steel prices have quadrupled since 2018. Steel tariffs have caused a rush to source from US providers, making it harder to secure supplies. White said the roughly 50-person business has cut costs by putting off equipment purchases or not rehiring for some vacant positions. "It has affected a lot of things," she said. Costas Benchmark's De Jonge said at pre-tariff rates, steel, aluminium and copper accounted for around 5% of a vehicle's production costs in the US. With tariffs, that rises to up to 9%, he said. Based on estimates from Cox Automotive and Benchmark Mineral Intelligence on tariffs in place combined with the planned copper rates, the US car industry would pay on average minimum duty of $1,700 (R30,538) for every car made in the US and $3,500 (R62,873) per car imported from Canada and Mexico that complies with the USMCA trade deal. It would be as much as $5,700 (R102,395) for every car imported from elsewhere. The numbers add up fast in a low-margin industry where the average US new vehicle selling price in June hit $46,233 (R830,538), according to consultancy JD Power. Consultancy CRU Group estimated the average combustion-engine or hybrid car requires about 24kg of copper, while the average fully-electric car needs around 59kg. Dan Hearsch, global co-leader for automotive and industrials at consultancy AlixPartners, said supplier agreements tend to be indexed to copper prices and revised every few months. However, the spike in copper prices last week has forced car suppliers to go to customers and "we need to talk about this on top of all our other tariff conversations'," Hearsch said. Some in the industry remain skeptical the copper tariff will be implemented. Trump has a history of delaying or walking back tariff threats. Andy Leyland, co-founder of supply chain specialist SC Insights, said a copper tariff would likely be short-lived because higher inflation caused by border taxes will collide with the reality of the US political calendar. where midterm elections will be held in November 2026. "Most Americans don't give a damn about foreign policy," Leyland said.
The South African
30-06-2025
- Business
- The South African
Gauteng's best-run municipality is a riverside city escape
The office of the Auditor General of South Africa (AGSA) recently published its annual review of local municipalities, including the best-run ones. As reported by BusinessTech , the audit covered results for the 2023/24 financial year and revealed the best-run municipality in the country, as well as in each province. The AGSA listed the 25 municipalities in the country that had achieved consecutive clean audits. Most of these municipalities were in the Western Cape, but the best-run municipality outside of the province was one in Gauteng. According to the results of the audit, Midvaal was the best-run municipality outside the Western Cape. This municipality in the south of Gauteng, maintained its clean audit status for 11 consecutive years, making it one of the best-run municipalities in all of South Africa. 'Midvaal prides itself on a well-governed, effectively managed, financially viable and sustainable local government,' the municipality said, as per BusinessTech . 'We are a municipality committed and dedicated to creating an environment conducive to social and economic development.' it also said. The municipality is located within the Sedibeng District, in the Southern region of Gauteng and stretches over 1722km² with a population of 111 612. A quieter contrast to city life, Midvaal offers boating, fishing, and water sports at Vaal Dam and Marina. Some outdoor offerings include Suikerbosrand Nature Reserve, hiking trails like Klipskuur/Klipkraal, croc ranches, as well as fun, treetop adventures. As per property data, house prices in Midvaal range from R900 000 for smaller one-bedroom apartments to about R3 million for more spacious full-title homes with five or more bedrooms, meaning one would need to earn between R32 000 and R102 000 per month to buy a home in this Gauteng municipality. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
06-06-2025
- IOL News
How Kim White Towne's family is fighting to bring her home after her murder in the US
Kim White Towne's family is fighting to repatriate her remains after she was allegedly murdered in the US by her husband. They have launched a BackaBuddy campaign to cover the costs, with Lauren Delcarme writing on behalf of the family: 'The process of repatriating a loved one's remains is both complex and costly. Expenses possibly include cremation, documentation, and international transport. The estimated cost to bring Kim home ranges from $4 000 to $6 000.' Towne, 32, died on 25 May, with her husband Alexander Towne simply telling emergency services in a 911 that he doesn't think 'she's with us any longer.' Inside their home in West Virginia, authorities found the lifeless body of his wife, Kim. She had been strangled, while their toddler son was in another room. Kim, originally from Parklands, had visible upper body trauma and was pronounced dead at the scene. Delcarme wrote further as part of the campaign to repatriate her body: "We are reaching out to our community and beyond to ask for your support in raising the funds needed to reunite Kim with her family and homeland. Your generous contribution will go directly toward covering the costs of her repatriation and memorial in South Africa." At the time of writing, they have raised R102 134, about 95% of their R108 000 goal. Of the incident, Kim's brother Jason White says: 'Kim was in love. Then she found out she was pregnant. In Dubai, having a child outside of marriage is a big issue, so they got married in December 2021.' After the wedding, the couple relocated to South Africa, first settling in Milnerton before moving to Gordon's Bay. When their baby turned three-months old, Alex returned to the US to secure Kim's visa, which would allow her to move and join him there.
The Citizen
31-05-2025
- Politics
- The Citizen
Gauteng NPOs face collapse as social development cuts funding
Despite the increasing need for child protection services, the department has returned significant sums to the provincial treasury. Non-profit organisations (NPOs) providing vital services to vulnerable children across Gauteng are struggling to stay afloat due to funding cuts and delays by the Gauteng Department of Social Development (GDSD). According to the Democratic Alliance's Gauteng MEC for Social Development, Refiloe Nt'sekhe, children in need are bearing the brunt of these failures. Sharp decline in support for NPOs Nt'sekhe said the department has consistently reduced the number of NPOs it funds. 'In the 2021/22 financial year, the department was funding 2 856 NPOs, 2022/23 – 1 837, 2023/24 – 1 464, and about 1 328 in the 2024/25 financial year,' she stated. One of the affected organisations is a foundation in Daveyton, Ekurhuleni, which caters for children and operates feeding schemes. With funding either delayed or completely withdrawn, operations have been severely impacted. Despite the increasing need for child protection services, the department has returned significant sums to the provincial treasury. 'In 2023/24, GDSD returned R554 million, and the first quarter of the 2024/25 financial year already indicates R102 million returned,' Nt'sekhe said. ALSO READ: South Africans trust business and NGOs, but have beef with the rich 'No sympathy for social needs' As South Africa observes Child Protection Week, Nt'sekhe has called for greater accountability from MEC Faith Mazibuko. 'Delays in the signing of Service Level Agreements and disbursing funds demonstrate her department's incompetence and a lack of sympathy towards the province's social needs and the well-being of its most vulnerable children,' she said. She added that Mazibuko could no longer blame her predecessor and urged her to effect urgent changes within the department. 'This Child Protection Week, we must demand transparency and clear timelines on the disbursement of funds to NPOs.' ALSO READ: My Vote Counts asks for extension and transparency in IEC appointments Constitutional rights under threat Citing Section 27 of the Constitution, Nt'sekhe said the state has a legal obligation to ensure that citizens, especially children, have access to food, healthcare, and social security. 'Without adequate funding for NPOs, the chances of abandoned children surviving and thriving diminish significantly,' she warned. The GDSD had not yet responded to The Citizen at the time of publishing. NOW READ: MES faces explosive claims of BEE violations and financial misconduct
