U.S. steel and aluminum tariffs doubled, industry executives warn: demand will be hit
U.S. President Trump raised aluminum import tariffs to 50%, prompting industry executives to warn of a potential decline in demand. Executives at Novelis stated that this policy will burden consumers and affect demand, especially at the current tariff levels. Although Trump claims that this move aims to protect domestic manufacturers, many businesses are concerned that high tariffs will increase consumer purchasing costs, leading to greater market volatility. Related contract prices rose to their highest level since 2013 on the New York Commodity Exchange
According to the Zhitong Finance APP, industry executives have warned that the new 50% tariff on aluminum imports imposed by U.S. President Trump may be difficult for consumers to accept, leading to a decline in demand.
Derek Prichett, Senior Vice President of Global Metals at Novelis, stated at the 17th Harbor Aluminum Summit held in Chicago: "We are concerned that this tariff policy may lead to a decline in demand, especially at the current level of imposition. Overall, this is indeed an adverse factor."
He also pointed out that his company's operations in Canada and the United States are severely affected by the tariffs. The Atlanta, Georgia-based company is the largest manufacturer of flat-rolled aluminum products widely used across various industries, including automotive and aerospace.
Trump has stated that these tariffs are intended to protect the profit margins of domestic manufacturers and stimulate investment in U.S. production. However, the U.S. still heavily relies on imports for the production of various products, from beverage cans to cars to airplanes.
Many corporate executives have indicated that manufacturers may not be able to bear such high tariffs. Earlier this year, Trump raised this tariff rate from 25% to the current level. They believe that these tariffs will increase the cost for American consumers to purchase goods.
Hisham Alkooheji, Chief Marketing Officer of Aluminium Bahrain BSC, stated that the 50% tariff effective from June 4 is "a real turning point," as it is difficult to pass this cost onto consumers.
Trump's tough and constantly changing tariff measures have also led to increased volatility in the metals market. Following Trump's announcement last Friday to double the tariffs, contract prices linked to the prices manufacturers pay for aluminum delivered to the Midwest surged 54% on the New York Mercantile Exchange on Monday, reaching the highest level since 2013, and remained near that level on Wednesday
