The US government’s newly implemented tariffs in 2025 are poised to reshape the electric vehicle (EV) charging landscape, driving up costs for charging equipment and the underlying electrical infrastructure.
A major concern stems from tariffs on critical raw materials such as copper, steel, and aluminium—integral to the manufacturing of EV chargers and associated infrastructure. With many chargers relying on high-grade copper for power transmission, any increase in copper pricing could significantly raise cable manufacturing costs.
Similarly, active 25% tariffs on steel and aluminium imports are expected to inflate the cost of enclosures, mounting systems, conduits, and cable trays. Manufacturers may need to redesign equipment using alternative materials like composites to mitigate these effects.
Switchgear components, essential for grid integration, are also affected by the material tariffs. Additionally, IDTechEx research highlights transformers as one of the most expensive components of DC fast chargers due to their manufacturing complexity and long procurement timelines. Tariffs are likely to exacerbate transformer price pressures and further delay large-scale charging infrastructure projects.
Smaller installations may weather the impact more smoothly. A recent supply chain update from Border States shows that 80–90% of essential materials for electrical construction in the US are sourced domestically, and imports from Mexico, which meet USMCA standards, remain tariff-free. As such, total project cost increases for these projects are expected to be in the range of 10–13%, often absorbed by contingency budgets without stalling progress.
Many EV charging firms have anticipated these challenges, aligning operations with Buy America mandates by investing in domestic production. Over the past few years, major manufacturers have ramped up US-based factories and assembly units, ensuring a degree of resilience against supply shocks.
However, the key vulnerability for large-scale projects lies in transformer imports. The US imported $29.2 billion worth of transformers in 2024, with 80% sourced from abroad, particularly from Mexico, China, Thailand, South Korea, and Vietnam. Despite repeated calls from Washington to increase domestic transformer production, shortages persist and continue to impede nationwide EV infrastructure rollout.
In conclusion, while the 2025 tariffs introduce cost escalations and supply chain friction, they also offer a potential silver lining: accelerating the transition to local manufacturing, fostering innovation in material science, and prompting overdue investment in grid technologies. Whether these benefits can outweigh the near-term disruption remains to be seen.
NB: Featured photo is representational; courtesy: ChargePoint.
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