U.S. metals prices are soaring as industries brace for the ripple effects of former President Donald Trump’s revived 25% tariffs on steel and aluminum. With the measures set to take effect soon, domestic supply shortages and rising costs are sending shockwaves through sectors like auto manufacturing and construction 🏗️.
Aluminum: The Big Squeeze
Net imports cover ~82% of U.S. aluminum needs, per Morgan Stanley. Prices for the metal have skyrocketed 60% since Trump’s 2016 election, with premiums over global benchmarks hitting a 35¢/lb high this week. Smelters produced just 670K tonnes last year — a fraction of 2000 levels — leaving a massive gap between supply and demand. Restarting idled plants could take 6–12 months, analysts say ⏳.
Steel & Copper Heat Up
Domestic steel prices jumped 40% in days, while copper traders panic-bought amid fears of future tariffs. Though copper escaped Monday’s announcement, Comex futures premiums briefly hit record highs before cooling slightly 🥵. Experts warn prolonged price hikes could slow economic growth and ignite trade wars.
Industry Reactions: Mixed Signals
U.S. producers praised the tariffs as a lifeline, but executives admit scaling production won’t happen overnight. ’You can’t cut your nose off to spite your face,’ said PerenniAL CEO Brian Hesse. Canadian leaders warned the 25% levy could backfire, recalling market chaos from Trump’s 2018 tariffs. 🌍 Global metals prices dipped Tuesday as trade war fears rattled markets.
