Aluminum Production NAICS 3313

Mar 18, 2025 - Trump Imposes Metals Tariffs

• On March 12, President Trump moved to protect US metals producers by increasing US import tariffs on steel and aluminum. Trump restored effective no-exclusion tariffs of 25% on all imports of the metals and extended the duties to 289 steel and aluminum downstream product groups, from nuts and bolts to soda cans, Reuters reports. Canada and the European Union retaliated with the EU imposing tariffs on up to 26 billion euros of US exports, while Canada – the biggest foreign supplier of steel and aluminum to the US – plans more than $20 billion in retaliatory tariffs, per Reuters. US aluminum and steel producers welcomed the administration’s action, while downstream users of the metals said the tariffs will raise their costs. Aluminum and steel companies have long complained about foreign producers undercutting them on price and say tariffs have been effective at spurring more investment in the US.
• An alumina shortage and shipping disruptions that drove up the global price of aluminum last year, are expected to ease in 2025, according to Metal.com. (Aluminum metal is produced by refining alumina oxide from bauxite into alumina.) Per a Shanghai Metal Market (SMM) report, alumina supply growth is likely to outpace demand this year, creating a surplus that could reduce pressure on operating costs for aluminum producers. Based on SMM’s analysis, the global metallurgical-grade alumina (MGA) surplus is expected to reach approximately 2.6 million tons in 2025, a year-over-year increase of about 2 million tons. Primary aluminum may shift to a narrow surplus amid limited capacity growth and steady demand, per SMM. Regional markets are expected to vary, with the US remaining resilient while Europe faces supply risks.

• A new rule proposed by the National Highway Traffic Safety Administration would establish a new Federal Motor Vehicle Safety Standard requiring that new passenger vehicles be designed to reduce fatalities and serious injuries among pedestrians struck by vehicles, Aluminum Week reported in September. The proposed rule would apply to passenger vehicles with a gross vehicle weight rating of 10,000 pounds or less, which includes multipurpose passenger vehicles like trucks, SUVs, crossovers, and vans. A recent article in The Economist stressed the urgent need to enhance passenger safety, noting that heavier SUVs and trucks contribute disproportionately to road fatalities among occupants of smaller vehicles. By prioritizing lighter materials such as aluminum, the US auto industry can improve safety outcomes while reducing the overall danger larger vehicles pose on the road. The Economist magazine noted that US roads are nearly twice as dangerous as the rich-world average.
• According to the latest US Bureau of Labor Statistics data, the producer price index for aluminum producers rose 8.7% in December compared to a year ago after falling by 3.2% in the previous December-versus-December annual comparison. Employment by the industry slipped 1.1% year over year in December, while in January average wages at primary metals manufacturers rose 4.4% YoY to a new high of $30.07 per hour, BLS data show. After-tax profits for nonferrous metals companies, which includes aluminum producers, jumped 34.7% YoY in Q3 but fell 14.6% versus Q2, according to the Census Bureau. Following a sharp decline in 2023, the global price of aluminum rose 9.7% in 2024, and is forecast to rise 1% this year and 4% in 2026, according to the World Bank.