Trump's Copper Tariff: How Mexico's Logistics Sector Can Respond

Copper has long been part of the most fundamental infrastructure of modern commerce: cables, motors, semiconductors, transformers, batteries, solar panels, and machinery. I dare say — without exaggeration — that this metal is the nervous system of global industry. 

That’s why US President Donald Trump’s recent decision to impose a 50% tariff on copper imports has sparked concern across the entire supply chain, particularly among supplier countries like Mexico. This announcement will trigger ripples in prices, contracts, and sourcing strategies — repercussions that are already being felt along cross-border corridors. 

Why does copper matter so much? 

In 2024, the United States imported nearly US$3.46 billion in refined copper from Mexico. The country's role as a regional supplier is vital to the North American industry, particularly for the automotive, electric, electronics, construction, and energy infrastructure sectors. 

As a result, the tariff will bring an estimated 10% price increase in copper futures markets in the United States. In other words, investors and buyers have preemptively assumed that, once tariffs raise import costs, the domestic price of copper will also rise. 

From a logistics standpoint, such measures introduce a host of complications: the need to reroute and redistribute inventory; border delays due to tighter inspections on product origin and classification; increased operational costs to ensure regulatory compliance; and potential surcharges stemming from customs violations or contract loopholes. 

On the Mexico–US trade route, businesses must reassess their logistics strategies based on tariff scenarios, even if they haven’t yet been officially implemented. Because if there’s one thing we’ve learned from past measures, like those affecting aluminum and steel, it’s that execution can be sudden, and its impact immediate. 

In this context, it’s natural to focus on costs, but doing so would be short-sighted. The real differentiator lies in who can adapt early, redesign their routes, and anticipate new logistical and contractual rules before they become mandatory. 

In my experience, exporters, particularly those managing logistics, should be asking themselves: 

Do we have the necessary documentation and fiscal traceability to prove origin? 

Do our logistics contracts include adjustment clauses for regulatory changes? 

Are we ready to redistribute inventory if current flows become inefficient? 

These are not crisis questions. They’re a matter of operational maturity. In today’s trade environment, logistics can no longer afford to be reactive: it must operate from strategic foresight. 

Mexico and Chile, according to reports, have already begun discussions with Asia and the European Union to redirect part of their copper production, as confirmed by Chile’s vice minister of foreign trade. This opens the door to explore new multimodal export routes, distribution hubs along the Pacific with access to Asia, increased storage capacity to manage volatile flows, and contractual innovation, including insurance, hedging mechanisms, and safeguard clauses. 

The copper case sends a clear signal: The line between trade and politics is becoming increasingly blurred. That’s why, beyond copper, this episode offers a deeper lesson: In volatile times, logistics is not just about compliance, it’s about competitive leadership. 
 

Ilan Epelbaum is director general of Mail Boxes Etc. México (MBE), where he leads the company’s positioning strategy in the country and manages relationships with commercial partners and franchisees across the nation. He is also responsible for overseeing the expansion of the MBE network throughout Mexico.