Metal Service Centers NAICS 423510

Jul 23, 2025 - Copper Prices Soar on New Tariff Threat

• President Trump in July announced new tariffs on copper imports, causing copper prices to soar to a new all-time high, The Wall Street Journal reports. Trump set an August 1 deadline for imposing a 50% tariff on copper, joining steel and aluminum (also subject to 50% levies). Copper shipments into the US are expected to accelerate in the coming weeks as companies scramble to get the metal into the country before the 50% tariff goes into effect, according to Reuters. Metal service centers that store, transport or sell copper need to be vigilant to protect against theft as the price of the metal soars. In May, the Denver City Council voted to pass new regulations for scrap metal sales, hoping to make it harder for thieves to sell materials like copper, copper alloys, bronze, brass and aluminum.
• To avoid stiff tariffs on imported metals and benefit from the reliability and timeliness offered by shorter supply chains, more companies are considering sourcing from US-based mills, according to metals service center Mead Metals. Makers of metal products who reshore their supply chains can benefit from relationships with local mills and service centers that offer just-in-time shipping and proximity advantages that reduce inventory, logistics costs, and lead times. But with demand for local suppliers rising, purchasing managers could see tight availability for certain metals, underscoring the need for proactive sourcing and flexible inventory strategies, according to Mead Metals. As for tariffs, a 2019 Federal Reserve study found that while tariffs imposed by the first Trump administration increased US steel production, higher input costs from tariffs reduced manufacturing jobs, relative to what it would have been without tariffs, and raised production costs for metal-based goods.

• The construction sector, an important customer industry for metal service centers, is looking to recent interest rate cuts by the Federal Reserve to spur demand for new construction, Metal Service Center (MSC) reports. In an examination of why the US construction sector has fared as well as it has in the recent hostile interest rate environment, MSC consulted industry experts who generally agree 2025 will bring improvement. Longer term, the US steel industry’s focus on decarbonization and sustainability should be a plus. “We’re an important part of the sustainability solution, not part of the problem,” Brian Raff, VP Sustainability and Government Relations for the American Institute for Steel Construction, told MSC. A source of concern however is the Trump administration’s threat to hike tariffs, which, if realized, would cause imports to become more expensive and could encourage domestic manufacturers to raise their prices in tandem with tariffs.
• Producer prices for metal and mineral merchant wholesalers jumped 27.8% in May compared to a year ago, after falling 15.8% in the previous May-versus-May annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by the industry grew to a new high in April, up 8% year over year, while average wages at metal and mineral (except petroleum) merchant wholesalers declined 2.7% over the same period to $28.37 per hour, BLS data show. Sales for metals and minerals distributors fell 9.5% YoY in February and were down 4.1% from January, according to the Census Bureau. Over roughly the past three years, industry sales have declined by about 37%.