Aluminum prices in the US rise sharply due to Trump’s plans to double import tariffs.

Rising aluminum prices in the US due to plans to increase tariffs

In the US, aluminum prices have begun to rise suddenly due to President Donald Trump’s plans to raise tariffs on imported steel and aluminum by 25% to 50%. This new tariff policy is set to take effect on June 4, according to Reuters.

More than half of the aluminum used in the US for various industries is imported from abroad, mainly from Canada. This makes the country highly dependent on foreign aluminum supply.

Buyers in the market typically pay the base price of aluminum on the London Metal Exchange, plus a premium that includes taxes, transportation, and other costs.

According to Goldman Sachs, aluminum prices may continue to rise: the premium on aluminum prices after tariffs in the US could be $0.68-$0.70 per pound. The base price of aluminum on the London Exchange has already increased by 0.4% to $2453.5 per ton.

Emirates Global Aluminium plans to invest $4 billion in building an aluminum plant in the US. This plant is expected to produce up to 600,000 metric tons per year, making it a significant resource for the American industry.

In 2020, the US imported 2.7 million tons of raw aluminum from Canada. The imposition of a 25% tariff forced some producers to seek other markets, such as Europe, which has already led to a drop in aluminum prices in the European Union.

Plans for the expected increase in tariffs on steel and aluminum in the US have already led to rising aluminum prices in the country as many companies explore new supply routes. For some aluminum producers, this also means investments in the American industry, while for others, it necessitates a shift in strategy and focus in seeking new markets.

The proposed increase in tariffs on imported steel and aluminum in the US has already led to a sharp rise in aluminum prices. It is expected to encourage manufacturers to seek new markets and develop the domestic aluminum market in the country.