Key Points
- Tariffs are reshaping global trade flows and raising prices for American consumers, but are falling short of their likely goal to revive domestic primary aluminum production.
- The barrier remains the lack of access to competitively priced, long-term power, according to the industry.
- Norway-based Hydro, one of the world’s largest aluminum producers, told CNBC that a rise in power demand driven by artificial intelligence is likely to keep electricity prices at unaffordable levels to start new smelters.
Sweeping tariffs imposed by U.S. President Donald Trump on imported aluminum are reshaping global trade flows and inflating costs for American consumers. But they are falling short of their primary goal: to revive domestic aluminum production.
Instead, rising costs, particularly skyrocketing electricity prices in the U.S. relative to global competitors, are leading to smelter closures rather than restarts.
The impact of aluminum tariffs at 25% is starkly visible in the physical aluminum market. While benchmark aluminum prices on the London Metal Exchange provide a global reference, the actual cost of acquiring the metal involves regional delivery premiums.
https://www.cnbc.com/2025/05/09/the-aluminum-sector-isnt-moving-to-the-us-despite-tariffs.html