Threatened 25% tariffs on aluminium and steel imports to the US are expected to hit trade with Canada and Mexico, while the Aluminium Association has called on President Donald Trump to exempt the supply needed for American manufacturers. 

Trump said on Monday (10 February) he would be implementing a 25% additional tariff on imports of aluminium, steel and copper from Canada and Mexico, and a 10% tariff on China. The move is aimed at holding the countries accountable for illegal immigration and drugs from flowing into the US.

Approximately 80% of primary aluminium was imported from Canada in the first 11 months of 2024, according to the American Iron and Steel Institute. Canada, Brazil and Mexico are the top three steel exporters to the US.

Last week, Mexico’s President Claudia Sheinbaum said that she and Trump had agreed to halt the tariffs for 30 days while Mexico sends 10,000 National Guard members to the border.

Canada responded by agreeing to reinforce its border, while China has announced retaliatory tariffs on a raft of US products.

Shares in US steel and aluminium manufacturers rose on the announcement, while those in Asian and European steelmakers fell.

The US Aluminum Association delivered its industry’s positions to senior advisors in the White House last week, stating that it continues to support a tariff exemption for aluminium traded in North America but also enhanced regional trade enforcement.

“The United States is a powerhouse in aluminum production and fabrication against global competitors,” said the Association’s chief executive Charles Johnson. “That strength relies on imports of upstream aluminium, both smelted and scrap, from Canada. 

“The Aluminum Association welcomes President Trump’s efforts to secure our borders and support American manufacturing by tackling unfair global trade. During his first term, President Trump was early to recognise the genuine threat that non-market actors pose to US manufacturing industries like ours. This led to more than $10 billion in industry investment since 2016. This investment requires an enormous amount of metal, much of which the US industry must import from within North America.”

To ensure that American aluminium wins the future, Johnson is calling on President Trump to exempt the aluminium supply needed for American manufacturers, while continuing to take every possible action at the US border against “unfairly traded Chinese aluminium”. 

“This is consistent with action his administration wisely took during his first term. Then, we should work to keep unfairly traded aluminium out of the region by harmonising tariffs with our North American trading partners,” he added. 

According to the Aluminum Association, the industry generates USD228 billion in economic output, supporting 700,000 US jobs. And since 2016, the US aluminum industry has made more than USD10 billion in domestic manufacturing investments including the first new US rolling mills since 1980. 

“Thanks to robust domestic demand and coming investment, the US aluminum industry needs a steady and predictable supply of primary, secondary and scrap aluminum. Today, much of that metal comes from North American trading partners, especially Canada. The US industry sources around two-thirds of the primary aluminium it uses every year from Canada, since all US-based smelters, even running at full capacity, cannot produce nearly enough metal to meet demand. And about 90% of US scrap imports come from either Canada or Mexico. It would take billions of investment over decades to make the United States fully self-sufficient for its metal needs.”

Last week, the Can Manufacturers Institute (CMI), a broad coalition of US-based canned food producers and US metal canmakers, called on President Trump to provide immediate relief from tariffs and quotas. They stated that overly broad trade protection measures were negatively impacting American canned food industry stakeholders and US consumers, and putting the nation’s food security at risk.

“Tariffs and other broad trade tools can make America great again, but there are unintended consequences for our nation’s food security when a tariff is placed on tinplate steel,” said CMI president Robert Budway. “Domestic production of tin mill steel used to make cans for fruits, vegetables, and other essential foods Americans consume daily declined dramatically over the last 7 years. 70% of the tin mill steel needed to make canned products is imported today. President Trump should support American farmers, food producers, and consumers by removing all tariffs on tin mill steel.”

During Trump’s previous presidency, he initially imposed 25% tariffs on steel and 10% on aluminium, but later exempted Australia, Brazil, Canada and Mexico. President Biden also negotiated duty-free quotas with the UK, Japan and the EU.