Trump Raises Canadian Aluminum Tariffs to 50 Percent

President Donald Trump stripped Canada of its aluminum tariff exemption and increased the tariff rate on Canadian aluminum to 50 percent. The administration intends for the move to stimulate domestic U.S. production, though the action has pushed U.S. aluminum prices to a record premium over global benchmarks, raising costs for automakers and other industrial sectors.

Canada has historically provided approximately 70% of U.S. aluminum imports, largely due to competitive hydropower costs in regions such as Saguenay, Quebec. In response to the tariffs, Canadian Prime Minister Mark Carney is seeking new trade partnerships with the European Union.

U.S. Commerce Secretary Howard Lutnick defended the policy as a necessity for national security. Meanwhile, efforts to establish a new $4 billion smelter in Inola, Oklahoma, backed by Emirates Global Aluminium and Century Aluminum, have encountered legal challenges and local opposition regarding foreign land ownership and pollution.