00:00The world's dumbest tariff has been revealed.
00:03So many U.S. industries rely on this material.
00:05Construction, automobiles, aerospace, defense,
00:09even affects the price of food and beverages.
00:12No, it's not oil. It's aluminum.
00:15Trump's tariff sent prices soaring last year.
00:18That's pretty standard.
00:19But what's not is that even with the cost hike,
00:23imports still make up about 60% of domestic consumption.
00:26At the same time, U.S. aluminum production has continued to decline.
00:31Only four smelters are in operation right now,
00:34with only two at full capacity.
00:37That's because aluminum production requires a lot of electricity.
00:41It would take as much as Nevada generates to replace imports.
00:45But with the rise of AI, that energy is getting more expensive in the U.S.
00:50You see the problem.
00:51Canada seems to have this figured out, though.
00:54It uses hydropower.
00:55That's allowed it to supply America with aluminum for years.
00:59But now, Canadian producers are looking elsewhere because of tariffs.
01:04Meanwhile, the U.S. has turned to aluminum from the UAE and Bahrain,
01:09which are now at risk from the war with Iran.
01:13Renegotiating the U.S.-Mexico-Canada agreement
01:15could give Trump the opportunity to end tariffs on aluminum.
01:19But an off-ramp is worthless if the driver isn't willing to take it.
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