US Aluminum Tariffs Drive Up Costs Across Industries

Increased Tariffs and Rising Prices

The U.S. government has raised aluminum import tariffs to 25%, affecting all foreign suppliers. This policy has driven the CME Midwest premium to record highs, increasing costs for manufacturers and end-users.

Impact on the Beer Industry

Breweries are among the hardest hit, as aluminum is essential for cans. Despite past exemptions for Canadian imports, tariffs have still led to higher costs. Research indicates that by 2022, beer makers had paid an additional $1.4 billion due to these policies.

Dependence on Imports

The United States produces only a fraction of the aluminum it consumes. In 2024, domestic production reached 670,000 metric tons, while total consumption was around 4.9 million tons. Imports, mainly from Canada, remain critical to supply the demand. Even if idled smelters restart, the country will still rely heavily on foreign aluminum.

Market Volatility and Global Trade Shifts

The unpredictability of tariff policies has caused fluctuations in the U.S. aluminum premium, which spiked before stabilizing. Meanwhile, European aluminum premiums have declined, suggesting that some suppliers are redirecting shipments to avoid U.S. tariffs.

Outlook

Higher aluminum costs will continue affecting industries, from automotive to brewing. Without significant increases in domestic production, tariffs will remain a key factor in determining prices.

“US Aluminum Tariffs Drive Up Costs Across Industries”