The Importance of Aluminum

In the United States, aluminum is a vital metal known for its lightweight properties and excellent conductivity. This versatility allows it to be utilized effectively across various sectors, including transportation, energy systems, and even culinary applications. As Charles Johnson, the president and CEO of the Aluminum Association, aptly puts it, “It really is the magic metal.”

Aluminum Production: A Global Context

Designated as one of 50 “critical minerals” by the U.S. Geological Survey, aluminum production predominantly occurs outside the United States. This dependency on foreign aluminum is a concern for policymakers, especially given the recent push for increased domestic production.

Tariff Policies Under Different Administrations

Efforts to boost domestic aluminum production have included the imposition of tariffs on imported aluminum. Instituted in 2018 during the Trump administration, a 10% tariff aimed to protect U.S. industries. However, under the Biden administration, several trading partners received exemptions, reducing the effective tariff rate on imports to approximately 3.91% as of February 2025, according to S&P Global. In March 2025, tariffs on both steel and aluminum were increased to 25% by President Trump.

Major Sources and Economic Effects

Canada stands out as the largest supplier of aluminum to the United States. While the long-term economic implications of these tariffs are still being assessed, some experts maintain that any resultant price increases for consumers may be minimal. For instance, Scott Paul, president of the Alliance for American Manufacturing, noted that a $40,000 vehicle might experience only a $75 price increase attributed to tariffs.

Challenges and Future Outlook

The current administration argues that these tariffs are vital in countering unfavorable trends in the global economy, particularly concerning the influence of China. “The subsidies allowed China to come in at an artificially low price. And that has roiled the aluminum industry globally and in particular in the United States,” explained Paul.

Moreover, rebuilding smelting capacity domestically poses its challenges. According to the Aluminum Association, constructing new facilities for aluminum processing could take a significant amount of electricity and potentially detract from job growth. An estimated timeline for establishing such industrial facilities ranges from eight to ten years, suggesting a continued reliance on imported aluminum in the interim.

Johnson highlighted this dilemma, stating, “In the meantime we will import.”