The U.S. has introduced the latest iteration of tariff measures in 2025, sharply increasing duties on key industrial metals. Import tariffs on steel and aluminum were doubled to 50% from 25% (effective June 4, 2025), while a new 50% tariff on most copper products took effect on August 1, 2025.

Key highlights include:
— The 50% tariffs on imported steel, aluminum, and copper directly threaten the ambitious agenda to upgrade and expand the U.S. power grid.
— Regulated utilities recover prudent costs from customers via rates, but a sudden surge in capital costs because of tariffs puts that cost recovery at risk.
— From a credit perspective, these tariffs introduce additional risk for utilities, and a layer of financial pressure that could weaken the financial performance of some issuers.

“U.S. regulated utilities are confronting the current 50% tariffs on steel, aluminum, and copper with a mix of caution and resilience,” said Jasper Shi, Assistant Vice President, Corporate Ratings. “Credit impacts should be manageable for most, provided regulators continue to support prudent cost recovery, but there is little doubt the tariffs have introduced incremental risk.”