US Imposes 25% Tariff on Canadian and Mexican Aluminum: Impact on Global Trade & Market Prices.
The US plans to impose a 25% tariff on aluminum imports from Canada and Mexico, which could shift Canadian aluminum exports to Europe. This move is expected to impact global aluminum prices, with LME and COMEX markets already showing fluctuations. In 2023, the US imported 5.46 million metric tons of aluminum, with Canada supplying 56%. With rising import costs, Canada may redirect its aluminum exports to the European market.
The United States plans to impose a 25% tariff on aluminum imports from Canada and Mexico.
As a result of this decision, aluminum exported from Canada to the U.S. is expected to be redirected to Europe.
Decline in Overall Market Prices
Aluminum prices fluctuate on the London Metal Exchange (LME), with additional costs such as transportation, taxes, and processing fees adding to the final premium. On the COMEX market, the price of European aluminum contracts expiring on February 28 dropped from $370 in January to $322—a 10% decline.
U.S. Aluminum Import Status
In 2023, the United States imported 5.46 million metric tons of aluminum, with Canada alone supplying 3.08 million tons (56%).
Increase in European Imports
In 2023, EU nations imported 158,000 tons of aluminum from Canada (2.9% of total imports), up from 110,000 tons (1.9%) in 2022. The 25% tariff imposed by the U.S. could increase aluminum import costs, prompting Canada to shift its aluminum supply towards Europe.
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