Tariffs, tensions and tonnage: Three words primarily influencing US aluminium prices soar in 2025

In a volatile fusion of tariff tensions, supply chain snarls, and shifting trade dynamics, US aluminium import costs have surged to multi-year highs, reshaping the metals market and sending shockwaves through American manufacturing.

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On April 9, 2025, the United States imposed additional aluminium tariffs — 20 per cent on EU-origin goods and 10 per cent on UK imports, building on the existing 25 per cent base duty introduced under Section 232 in 2018. For EU producers, the effective tariff rate now stands at a crushing 45 per cent, sending shippers and buyers scrambling.

The Midwest Premium, the benchmark regional surcharge that includes transport, handling, and tariffs, has reacted dramatically. According to Reuters and CME Group data, the Midwest Premium recently spiked to over 33 cents per pound, a level not seen since the tariff war era of 2018-2019. That’s nearly double the average of 17-18 cents recorded in early 2023.

Middle East tensions have forced commercial ships to reroute via the Cape of Good Hope, extending voyages from the Persian Gulf to the US East Coast by 40 per cent and Asia-to-US East Coast routes by 30 per cent. While container shipping rates have dropped 75 per cent from 2021 peaks, policy uncertainty and North American port capacity constraints remain critical risks. Industry insiders warn that volatile trade policies could trigger another freight cost surge.

Though China faces its own set of US tariffs and quotas, the new US-EU tensions open strategic opportunities. Chinese aluminium, especially from Rusal-backed ventures and state-owned giants like Chinalco, is increasingly redirected toward Asia, Africa, and Latin America.

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