The majority of the U.S. aluminum industry is advocating for stable trade policies in light of President Trump’s recent announcement to potentially increase tariffs on aluminum imports to 50%. This proposed change raises concerns among industry leaders about market volatility that could impair domestic demand and hinder investment opportunities. On May 30, Trump expressed his intention to double tariffs on aluminum and steel imports from 25% to 50%, effective June 4, although no executive order has been issued yet.
Initially, he imposed the 25% tariff on May 12 to support U.S. manufacturing. However, many leaders argue that tariffs alone will not boost aluminum production and that high duties on critical supplies from Canada could negatively impact U.S. businesses. Matt Meenan, vice president of external affairs for the Aluminum Association, acknowledged the administration’s commitment to strengthening the aluminum sector but emphasized the need for consistent trade policies.
He noted that two-thirds of U.S. primary aluminum consumption is fulfilled by Canadian imports, urging the administration to create tariffs specifically targeting countries like China, while exempting reliable partners such as Canada. Century Aluminum, the largest U.S. producer of primary aluminum, welcomed the tariff announcement. CEO Jesse Gary credited Trump for prioritizing domestic aluminum production and job creation.
Century reported a significant profit increase, marking $36.6 million in Q1, a shift from a $3 million loss the previous year. Contrarily, other industry leaders, like Anders Vindegg from Norsk Hydro, voiced concerns that fluctuating trade policies could create market uncertainty, dampening both domestic and global aluminum demand. With the U.S. heavily dependent on imports—consuming 4.9 million metric tons in 2024, with 4.2 million tons sourced from abroad—analysts predict a 50% tariff could lead to significant demand destruction and price hikes.