Aluminium and steel prices in the United States remain close to recent highs, following the implementation of 25% tariffs that have prompted retaliation from Canada and Europe. Since President Donald Trump’s administration began, U.S. steel and aluminium prices have seen significant increases, driven by promises of imposing various duties intended to safeguard American producers. These tariffs, which encompass a broad range of related products, are aimed at reinforcing the domestic metal industry. On Tuesday, tensions escalated between U.S. and Canadian officials, leading to a surge in metals prices.
Trump announced intentions to raise tariffs on Canadian imports to 50% after Ontario imposed duties on electricity exports to the U.S. However, both parties later backed down and withdrew the proposed heightened tariffs, resulting in a partial easing of prices. The U.S. Midwest duty-paid aluminium premium reached an all-time high of 45 cents per pound on Tuesday, translating to over $990 per metric ton, a nearly 20% increase from the prior session. It ultimately settled at 41 cents but has soared more than 70% since the beginning of 2025.
Although the April contract hadn’t traded yet on Wednesday, the May contract rose by 1.3%, matching previous record levels. In the physical aluminium market, buyers typically pay a premium above the London Metal Exchange benchmark prices, which also include taxes and handling costs. Steel prices have shown similar volatility. Hot rolled coil (HRC) prices in the Midwest rose to $945 per short ton on Wednesday, marking a 37% increase since late January and the highest figures since February 2024.
Conversely, while U.S. aluminium costs have surged, prices in other global markets have decreased as metal supplies may be redirected. In Europe, the duty-paid aluminium premium has dropped to $230 per metric ton, the lowest since January of last year, reflecting a decline of over 35% since the start of 2025.