Tariffs, minerals, and supply chains reshape US automotive metals outlook

The US automotive metals market has paused, with the index drifting sideways as manufacturers confront higher input costs and potential supply gaps. Tariffs on steel, aluminum, and related inputs have risen to about 50%, acting as a tax on each car built with imported materials. The 25% steel tariff alone can add roughly $1,500 to a typical vehicle, and total costs rise with higher duties. Even firms relying on US-sourced steel feel pressure as domestic prices move in step with tariff-driven increases, squeezing margins and risking higher consumer prices. Automakers face a choice: absorb the added expense or pass it through to buyers. Beyond tariffs, access to lithium and rare earths remains risky. China controls a large share of refining, creating vulnerability in EV supply chains, pushing automakers to seek domestic mining and refining partnerships to secure battery materials. In response, firms are locking in longer-term contracts, diversifying suppliers, redesigning parts to reduce imported metal, and investing in recycling. Some have struck direct deals with mining companies to secure materials. The outlook for 2026 remains uncertain: prices may stabilize as the tariff shock is absorbed, but EV demand will keep volatility. Procurement leaders should emphasis forecasting, dual sourcing, and resilient inventory planning to weather shifts in policy and markets. Notable price moves: hot-dipped galvanized steel around $1,045/short ton, Chinese lead roughly $2,345.56/short ton, Korean 5052 aluminum coil around $4.18/kg.