FOCUS: US aluminium tariff impact being felt globally

The impact of the 10% aluminium tariff signed into law by President Donald Trump last week is already being felt on prices and premiums worldwide, and is affecting aluminium flows globally.

North America 
The US Midwest aluminium premium has risen 11 times in recent weeks, spiking by 2 cents per lb (11.8%) since Trump signed the tariffs into law with a presidential proclamation on Thursday March 8.
And the Midwest premium could reach as high as 23 cents per lb in the near term - a level high enough to attract supply to the US market, Novid Rassouli, an analyst at New York-based Cowen & Co, wrote in a research note on March 13.
Market participants have voiced mixed reactions to the tariffs, with most seeking further clarity on how they will be implemented - and how exporters can apply for exemptions.

Initially, only North American Free Trade Agreement partners Canada and Mexico were excluded from the tariff, while Australia has since been added to that list. Others, including Russia and the United Arab...

Published

Kirk Maltais

March 15, 2018

22:10 GMT