US closes aluminium tariff loopholes: Will the domestic industry really applaud Trump’s bold move?

In a policy shift announcement on Monday, February 10, the United States government has brought forth the decree to implement a 25 per cent tariff on all primary aluminium imports, effective March 4, 2025. The executive order, signed by President Donald Trump, aims to bolster the country’s domestic aluminium industry and address long-standing concerns over unfair international trade practices.

US aluminium imports in 2024 from top 10 countries worldwide 

The newly enforced tariff removes previous exemptions and quota deals, closing loopholes that had allowed nearly 75 per cent of aluminium imports to bypass tariffs. Domestic entities anticipate this move will benefit American aluminium producers, including Century Aluminum, a leading primary aluminium manufacturer based in Chicago.

Century Aluminum’s CEO, Jesse Gary, expressed strong support for the President’s decisive action to fight back against unfair trade practices that have disadvantaged the US primary aluminium industry for years. He stated, “We strongly support today’s Executive Order from President Donald J. Trump imposing a 25 per cent tariff to stop the flood of aluminium imports into the United States. President Trump’s decisive action will protect national security and help level the playing field for America’s aluminium workers. On behalf of our employees, I thank President Trump for putting America first and strengthening the Section 232 tariffs, which will help drive the resurgence of domestic aluminium production.”

The measure is part of an effort to rejuvenate domestic production and safeguard American jobs. According to industry analysts, the primary aluminium sector has been under significant pressure from low-cost foreign imports, particularly from China and Russia.

What does the trade data say about US aluminium imports?

The United States of America has been heavily dependent on transnational aluminium till 2024. According to the International Trade Administration, the 2024 data shows that Canada stands out as the most significant exporter to the US, with an impressive 3.15 million tonnes, dwarfing other contributors. Other notable exporters include the UAE exports of 347 thousand tonnes, China’s 218 thousand tonnes, and South Korean quantity of 214 thousand tonnes. In South America, Argentina exports 176 thousand tonnes. In Asia, India accounts for 159 thousand tonnes. Other relevant contributors include Bahrain, which has 200 thousand tonnes; Mexico, which has 78 thousand tonnes; Oman, which has 68 thousand tonnes; and Australia, which has 82 thousand tonnes. These are the top ten countries exporting aluminium to the United States, led by Canada’s dominance. There are smaller yet regular exporters of aluminium who will be equally (read even more) affected by the tariff imposition.

Impact analysis