Manufacturers plead to the clarity of the tariff before copper stocks are diminished

CEOs in global manufacturing are pleading with clarity regarding Donald Trump’s tariff policy before imposing a 50 % tax on copper imports, as their stocks diminish and fail to current contracts.

The US President pledged to impose a rise tariff On the metal from August 1, matching levels already in all steel and aluminum imports. But it is still unclear whether the tax will be applied to all copper products, which raises anxiety across industries.

Deeper concerns are more concerns copper Come because they are already struggling with the high costs of Trump’s escalating trade war, with US products for cars and trucks to construction equipment that reaches uncertainty in politics.

Analysts warn of the consequences of prices and demand for permanent copper tariffs because the metal is widely used in electric cars, potatoes and defense equipment, as well as home appliances and wires.

The United States relies heavily on metal imports, which represented about 53 percent of copper request in 2024, according to Morgan Stanley.

John Olieri, President of North America, told Daimler’s truck that companies have become increasingly frustrated because they expected clarity on the customs tariff policy now. This week, the group informed a 20 percent decrease in truck sales in the second quarter in North America, where logistical services companies stopped due to uncertainty.

Oliri said: “It is clear that there is no tariff that is the best, but if there is something, only you have to tell us what it is, and we can continue life and start knowing how to deal with it.”

So far, Oliri said, the company had pushed against suppliers who called the definitions as a force force in an attempt to raise prices on long -term purchase deals on aluminum and steel.

“The contracts that we have protected us until this stage, but certainly at some point begin to run out and then re -negotiation take place.”

The White House did not issue details of the definitions, including whether it will be applied to semi -transferred copper products such as wires and bars, and whether the restrictions imposed on copper scrap exports may also be placed.

In addition to long -term contracts, there was a Copper In the United States this year on high definition expectations. As a result, analysts say the final users of copper are unlikely to be fully impact until their producers are running out.

“I would like to say that there are six to nine months to use this temporary store built from the additional purchase of refined copper, and then it can start seeing the full price of the 50 percent tariff,” said Amy Jawjal, a strategy expert in Morgan Stanley.

“They will ultimately need to raise prices to compensate for higher copper costs, which may lead to the destruction of the demand for the road,” said Jake Celz, director of governor at Allspring Global Investments, while previous companies mean that American industrial companies have healthy mineral inventory lists at the present time.

Companies and investors still hope that the Trump administration will settle on a low copper tariff. The arbitration between the prices of the United States and others not only exploded to about 28 percent, indicating that the market does not fully believe that the tariffs of 50 percent will enter into force.

“The best of my glimpse is that achieving a 50 percent tariff impact on copper we hope it will be understood before already feeling it,” said James Kurdier, CEO and head of the merchant in the alternative investment group based in Florida.

Barclays estimated that the customs tariff by 50 percent can add up to $ 110 to the cost of the gasoline vehicle and $ 700 for an electric car where the metal is used to harness the wires, as well as batteries, engines and transformers.

However, the effect is likely to be filtered through automobile companies indirectly, because it is the suppliers who often buy the metal. Trump also promised that the auto industry, which faces a 25 percent tariff for foreign -made vehicle imports, would not be stacked with additional metal fees.

During the pre -profit surgery with analysts on Wednesday, BMW described Germany’s influence from the top copper tariff as “minimal”, according to Bernstein.

Aerospace Industries Association, an American business group, has estimated that it could take up to 10 years to find a new resource for minerals and space, shift to coincidence and transform into a new critical resource due to the complex nature of space and space chains.

“In the short term, we encourage the administration to maintain access with the reliable sources of these minerals to avoid high prices, which will be felt by more than our young and medium suppliers,” said Dak Hardwick, Vice President of International Affairs in AIA.

How will copper prices be swing in the medium term as well. Analysts expect the global price to decline on EXCHANGE London Metal as soon as the argument deals will run their sessions. If the prices remain high, users can switch to alternative materials such as aluminum, which may cause copper low prices, according to SMBC Nikko.

For some, copper definitions offer an opportunity. The company of the company, the largest copper buyer outside China, said it saw the definitions of the company “positive” even when you wait for more details about the products that the fees will be applied to.

The company listed in Milan already makes the majority of its American products in the United States-which led to copper from Freeport McMORAN and recycled scrap materials. Then it makes the wire and cable in its own facilities in the United States.

“We are less exposed than the country and the rest of the sector to imports,” said Maria Cristina Beello, head of investor relations in Brisbian, noting that she imports about a third of her needs from the United States.

However, copper prices are passed directly to customers, based on standard prices, and Bifulco admitted that high copper prices may reach demand.

“In our case, we move to customers the prices of raw materials. Therefore, the real effect of tariffs is not on us, as it is on the final customers. Raw material prices tend to influence demand behavior.”

Participated in additional reports from Silvia Pfeiffer in London, Harry Dembesi in Tokyo and Marathha Muir in New York