Trump administration revisits aluminium tariffs: US traders brace for impact

In a recent development, President Donald Trump announced a one-month suspension of 25 per cent tariffs on Canadian and Mexican aluminium imports just days after announcing their imposition. The temporary pause, which extends until March 1, 2025, signals potential renegotiations over trade concerns and border security issues, raising uncertainty for US aluminium importers and domestic manufacturers alike.

Tariff turbulence: Domestic industry impacted

Already familiar with tariff-induced disruptions, the aluminium industry faces renewed concerns as traders and manufacturers brace for possible policy changes. Section 232 tariffs, imposed in 2018 during Trump’s first term, introduced a 10 per cent duty on aluminium imports, citing national security threats due to over-reliance on foreign metals. While these tariffs aimed to back domestic production, they ended up having mixed consequences.

Domestic manufacturers were hit with a surge in raw aluminium prices, which in turn led to increased operational costs. Many were forced to pass these expenses onto consumers or absorb the costs, tightening margins. According to Lance Thrailkill, CEO of Texas-based All Metals Fabricating, “The tariffs both directly and indirectly raised our costs. Mills in the US and abroad increased their prices as the market adjusted to the tariffs. Unfortunately, we had to pass some of these costs down to our customers.”

While some aluminium producers, including Century Aluminum and Alcoa, expanded operations due to the protective measures, smaller manufacturers and downstream industries, such as the automotive and packaging sectors, struggled with higher input costs and supply chain disruptions.