Aluminum ingots. Stock image.
Premiums for consumers buying aluminum on the physical market in the United States soared to record highs on Tuesday after President Donald Trump said he would double tariffs on Canadian metal to 50%.
The doubling of levies, in response to the Canadian province of Ontario placing a 25% tariff on electricity coming into the U.S., take effect from Wednesday.
Consumers buying aluminum on the physical market typically pay the London Metal Exchange (LME) benchmark aluminum price plus a premium that covers taxes, transport and handling costs.
Traders predict premiums will continue to rise as producers pass on as much of the extra costs of tariffs as they can.
Canadian smelters account for most primary and alloyed aluminum shipped to the United States. Aluminum is vital for the transport, packaging and construction industries.
About 70%, or 3.92 million metric tons of the…
