Tariff Impact Exposes Aluminum Market Fragility

Trump’s 50% aluminum tariffs are straining the global supply chain, according to Benzinga. The EU is drafting emergency measures to protect its €40 billion aluminum sector, which employs 250,000 directly and supports 1 million more jobs. U.S. aluminum buyers are paying nearly $4,200 a ton compared to $2,600 globally as the Midwest premium surged 81% since June. Major producer Rio Tinto has shifted from exporting Quebec output to the U.S. to buying aluminum on the U.S. spot market from rivals like Alcoa and reselling it to American customers. With only four U.S. smelters still operating, domestic supply remains inadequate, raising risks for canned goods and beverage companies as costs spill into consumer goods. Analysts warn that the tariffs are reshaping global flows while leaving U.S. production constrained.