The U.S. has imposed a 25% tariff on all steel and aluminum imports into the country starting today, March 12, 2025, marking a new escalation in Donald Trump’s trade war aimed at reducing the trade deficit and protecting American steel manufacturers. The European Commission has vowed to retaliate against the measure, which was announced by the U.S. a month ago, by imposing additional tariffs on €26 billion worth of U.S. goods starting April 1, 2025.

Aluminum-consuming businesses in the U.S. may face higher input costs as the 25% tariff on imported aluminum and steel leads to increased selling prices, ultimately affecting end consumers. According to the Aluminum Association of America, the country has a significant number of semi-finished aluminum product manufacturers but only four operational primary aluminum smelters to supply them.

The aluminum industry directly employs over 164,000 workers, but only 4,000 are involved in upstream metal production. These four smelters produced 670,000 tons of aluminum in 2024, compared to U.S. consumption of approximately 4.9 million tons. Total primary aluminum imports reached nearly 4.0 million tons, with 70% coming from Canadian smelters.