US Aluminum Industry Braces for Impact of Proposed Tariffs
The US aluminum industry is anticipating significant changes as President-elect Donald Trump proposes a 25% tariff on imports from major suppliers, including Canada and Mexico. According to Citigroup, aluminum could be one of the metals most affected by these measures.
Canada accounts for 60% of the aluminum imported into the US, which makes up around 70% of the country’s total aluminum consumption. The proposed tariffs have raised concerns about supply chain stability and potential price increases for US aluminum. Citigroup analysts predict that these policies could lead to higher domestic aluminum prices, while retaliatory tariffs from Mexico could exacerbate challenges for US mills.
The Aluminum Association, representing US aluminum producers, has voiced support for addressing unfair trade practices while advocating for targeted enforcement. Matt Meenan, the association’s vice president of external affairs, highlighted the need for balanced trade policies to protect domestic manufacturing. “Unfair trade practices by China remain the largest threat to US aluminum producers. Measures like stronger import monitoring and tariff harmonization in North America could address subsidies to Chinese aluminum firms, which have destabilized global markets,” he said.
China dominates global aluminum production, accounting for nearly 60% of the market over the past year, according to the International Aluminum Association. Despite this, open trade with Canada has been instrumental in driving over $10 billion in domestic investments over the past decade.
Sustainability Challenges and Opportunities
While trade policies are a pressing issue, sustainability remains a key focus for the aluminum industry. Aluminum’s recyclability has made it a preferred material for packaging, but recycling rates for beverage cans in the US have declined to 43% in 2023, below the 20-year average of 50%, according to the Aluminum Association.
Meenan emphasized the importance of improving recycling rates for aluminum beverage cans, which remain the most sustainable and recycled beverage packaging. “We’re actively working on state-level recycling refund programs and federal legislation to improve recycling tracking and access,” he said. Recycling rates for aluminum in building, construction, and automotive sectors remain strong, exceeding 90%.
The Aluminum Association’s dual focus on trade advocacy and sustainability highlights the industry’s efforts to navigate economic uncertainties while promoting environmentally friendly practices.
