Industrial and Commercial Bank of China: 50% Copper Tariffs Impacting US Automotive Supply Chain, Electric Cars Facing Significant Cost Increases

Colin Langan, an analyst at Fuguo Bank, emphasized that copper is crucial for wiring harnesses, motors, and battery components. He pointed out that the increase in copper prices caused by tariffs will directly raise production costs for automakers, with a particularly significant impact on electric vehicle companies - electric vehicles use much more copper than internal combustion engine models. Langan stated that the inconsistency of tariff policies has already triggered price fluctuations and market uncertainty, leading to delays in capital expenditure and inventory replenishment for both car manufacturers and suppliers. While American car companies may be able to pass on some of the costs to consumers, foreign brands may face a sharp decline in demand due to price increases and consequently lose market share in the United States.