First some good news for US aluminum buyers. President Donald Trump has backed off from his threat to hit imports of Canadian metal with a huge 50% tariff.
Now for the bad news. As of today they will be paying a 25% import tariff, not just for Canadian metal but for all aluminum products from all countries.
Market pricing has already shifted to reflect the Trump administration’s doubling-down on tariffs as a way of reviving domestic smelting capacity.
The CME Midwest premium , reflecting the cost of unwrought aluminum delivered to a US fabricator over and above the international London Metal Exchange basis price, is trading at record highs.
The high premium will flow down the aluminum product chain until it hits the last-stage user, whether it be Ford Motor, Lockheed Martin or one of the country’s many independent brewers.
That’s how tariffs have worked to date and things won’t change…
