Wall Street Breakfast Copper tariff is a big blow to EVs
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Jul 14, 2025 Higher copper tariffs are set to hit electric vehicles hard, raising manufacturing costs and complicating consumer demands. Automakers are scrambling to find alternative sourcing strategies to mitigate the impact. The discussion also touches on Autodesk's recent stock jump due to reports about no PTC deal, along with Powell's call for a review of the Fed building revamp. Additionally, Goldman Sachs shares some out-of-consensus stock picks that could intrigue investors.
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Copper Tariff Hits EV Costs
- Imposing a 50% tariff on copper imports will increase manufacturing costs, especially for electric vehicles that require more copper.
- This tariff introduces price volatility, causing automakers to delay capital spending and inventory restocking.
Tariffs Risk Auto Demand Drop
- Higher vehicle prices may dampen consumer demand amid inflation and rising interest rates.
- Foreign automakers risk losing market share in the U.S. due to increased import costs from tariffs.
Automakers Should Localize Supply
- Automakers should accelerate sourcing copper and materials domestically or from tariff-friendly countries.
- This strategy can mitigate the cost impact of new tariffs on critical components.