Author: Jeff Golden
May 15, 2025 - 7 MIN. READ
KEY TAKEAWAYS:
- The U.S. and China have agreed to a temporary 90-day reduction in tariffs, dropping U.S. tariffs on Chinese goods from 145% to 30%, and China’s tariffs on U.S. goods to 10%.
- While tariff de-escalation offers short-term relief, contractors should prepare for future volatility.
- Core electrical products like breakers, panels, and copper wiring will continue to experience price and availability volatility due to sourcing dependencies and market instability.
- Smart sourcing, inventory planning, and supplier diversification are essential to staying competitive.
- Staying informed is critical—tariff conditions can change rapidly, impacting both cost and supply chain reliability.
Supply chain volatility has once again reared its ugly head and appears set to stay for the duration of 2025. On May 12th, the U.S. and China agreed to a significant de-escalation in their ongoing tariff war. After weeks of volatility, both nations announced a temporary 90-day reduction in tariffs after two days of high-stakes talks. While the dust is still settling, staying informed—though often exhausting—is the only way to stay ahead in this shifting trade landscape.
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How Tariffs and Commodity Volatility Are Impacting Electrical Supply Chains – What Contractors Should Know
In the ever-evolving world of the building trades, what happens in Washington, Santiago, or Beijing can quickly ripple into your job site. Trade policy shifts, commodity fluctuations, and supply chain disruptions are no longer abstract economic forces—they directly impact the cost, availability, and reliability of the parts and materials contractors use every day.
Recent tariff discussions in the U.S. are a case in point. Earlier this past month, the federal government proposed new sweeping tariffs on imported raw and finished electrical components. Although those tariffs were suspended within days, the message was clear: policy-driven price volatility is not going away.
If you're an electrical, HVAC, or general contractor, this uncertainty can hit where it hurts most—your profit margins, project schedules, and client satisfaction. That’s why Raiven is stepping in to provide clarity, visibility, and proactive guidance.
In this blog, we break down what you need to know about the current tariff landscape and offer actionable steps to protect your business. Whether you're sourcing copper-heavy products like THHN wire or stocking up on circuit breakers, the time to plan is now.
Why Copper Matters—and Why It’s Moving
Copper is essential to nearly every electrical application, from wire and conduit to panels and transformers. It's also a global commodity, influenced by oil prices, interest rates, and geopolitical risk.
Interestingly, copper prices have recently dropped, with an 8% decline noted as of April 2025. This seems counterintuitive, especially given global unrest and trade tensions. But the drop is closely linked to falling crude oil prices—a historical bellwether for copper trends due to their 90% correlation. Some suppliers, however, may have had a knee-jerk reaction to the tariffs and increased pricing on copper related items, further disrupting the ability to accurately quote and source products for current jobs.
It is clear that there is no "normal” right now as it relates to pricing which will continue to remain volatile as geopolitical policies shift throughout the year. This volatility will also cause manufacturers to modulate their production cycles potentially creating temporary shortages of products as they too attempt to manage costs associated with rapidly changing market conditions. Contractors need to stay alert, not just for today’s prices, but for what might be coming down the pipeline.
What Tariffs Were Proposed—and Why They Still Matter
Earlier this year, the U.S. proposed steep tariffs—some as high as 125%—on electrical components and raw materials imported from countries including China, India, and Turkey. While USMCA countries like Canada and Mexico remained exempt, other key suppliers like Chile (a major copper exporter) faced proposed tariffs of up to 10%.
However, as of May 12, 2025, the U.S. and China announced a significant de-escalation: both countries agreed to a temporary 90-day reduction in tariffs. The U.S. dropped tariffs on Chinese goods from 145% to 30%, while China reduced tariffs on U.S. imports from 125% to 10%. While this offers temporary relief, the long-term outlook is still uncertain. The agreement is time-bound and contingent on continued negotiations.
Why does this still matter? Because the U.S. imports over 60% of its copper, and many electrical components rely on globally sourced materials. Even with tariff reductions in place, any disruption in future trade talks or expiration of the current agreement could bring pricing volatility back with force.
It's also important to note that tariff uncertainty alone has ripple effects. Suppliers may raise prices preemptively to hedge against future hikes, and shipping and manufacturing timelines can be disrupted by sudden changes in trade policy. Contractors should continue planning for intermittent volatility, even under the current reduced rates.
Beyond pricing, tariffs introduce broader procurement risks: they disrupt global supply contracts, incentivize domestic stockpiling, and strain vendor relationships. For contractors, this means navigating more complex sourcing scenarios and potentially longer lead times.
What Products Are Most at Risk?
To help our members prepare, Raiven analyzed several key electrical components based on three factors: tariff exposure, country of origin, and U.S. production volume.
Here’s what we found:
- EMT Conduit: Low risk when sourced domestically, but imports from China or India remain exposed to future tariff fluctuations.
- Electrical Breakers: Only 50% are made in the U.S. The remainder depend heavily on imports, with China still a key source. Even at the reduced 30% tariff, pricing and availability can be affected.
- Electrical Panels: Approximately 70% come from domestic or Mexico-based production (USMCA exempt), but Chinese panels remain under watch.
- THHN and Romex® Wire: Largely U.S.-manufactured, though some international sourcing persists, especially for large-scale commercial projects. Copper pricing and sourcing remain critical variables.
HVAC and plumbing contractors also face risks depending on the types of metal-based fittings and fixtures they rely on, many of which are impacted by shifts in global trade policies.
What You Can Do Now: Smart Sourcing Moves
This is not a moment for panic—it’s a moment for preparation. Here are four steps contractors should consider:
1. Diversify Your Supplier Base
Avoid over-reliance on a single manufacturer or country of origin. Build relationships with multiple vendors and look for U.S.-manufactured alternatives wherever possible. Raiven’s platform connects contractors to a network of vetted suppliers offering competitive pricing and transparent sourcing.
2. Track Price and Availability to Optimize Inventory Levels
Given how quickly trade policy can shift, contractors must stay plugged in. Don’t rely on headlines—look for practical, sector-specific insights that apply to your trade. Increasingly, there are real-time pricing options available that can even send alerts to your phone as pricing for key components moves with the volatility of the market. Consider subscribing to tools that allow you to track critical products availability and pricing so you can effectively manage your product inventory against your backlog requirements.
3. Stay Informed on Policy and Pricing Trends
Given how quickly trade policy can shift, contractors must stay plugged in. Don’t rely on headlines—look for practical, sector-specific insights that apply to your trade. That’s where Raiven comes in.
4. Partner with a Procurement Expert
Raiven tracks pricing, sourcing, and supplier reliability across the trades. Our platform is designed to help contractors navigate complex procurement decisions, stay ahead of risk, and make smarter purchasing choices—all while keeping your margins intact.
What’s Coming Next: Deeper Guidance by Trade
While this blog gives you a high-level overview, our upcoming white paper will provide in-depth strategies tailored to your trade—whether you’re an electrical contractor, HVAC tech, plumber, or general contractor.
📩 Stay Ahead—Sign Up for Updates
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Raiven is here to help you buy smarter, stay agile, and build better. Let’s prepare for what’s next—together.
This 90-day break is a chance to regroup and prepare. The more you stay informed, the more prepared you’ll be—no matter which way the tariff winds blow. Sign up for Raiven updates to get timely insights, actionable guidance, and expert commentary to help you stay ahead of the curve.