U.S. aluminum and steel prices hovered near recent peaks on Wednesday after 25% tariffs on imports took effect, triggering retaliatory measures from Canada and Europe. The Midwest duty-paid aluminum premium surged to a record 45 cents per pound ($990/metric ton) on Tuesday amid heated U.S.-Canada trade tensions before easing to 41 cents. Prices have soared over 70% since January 2025, driven by President Donald Trump’s protectionist policies aimed at shielding domestic producers.
Steel prices also spiked, with Midwest hot-rolled coil (HRC) hitting $945 per short ton—up 37% since January and the highest since February 2024. The volatility followed Trump’s threat to double Canadian metal tariffs to 50% after Ontario imposed duties on electricity exports, though both sides later walked back the measures.
While U.S. buyers grapple with soaring costs, European aluminum premiums slumped to $230/metric ton, a 16-month low, as global supplies shift away from tariff-hit markets. Analysts warn the disjointed pricing could disrupt supply chains and inflate manufacturing expenses globally.