Trump's aluminum tariffs fail to break US dependence on Canada The US is desperately trying to revive its aluminum industry, but high tariffs on the Canadian metal are raising costs for American businesses and consumers without quickly solving the country's dependence on imports, the Wall Street Journal reports. Key factors to consider: Canada, home to the largest aluminum plants in the city of Saguenay, has accounted for about 70% of US aluminum imports in recent years, largely thanks to an abundance of hydropower that keeps production costs competitive. Trump raised tariffs on aluminum imports to 50%, pushing the extra amount US buyers pay for aluminum above global market prices to a record $2,116 per metric ton in January 2026, a full 65% higher than in June 2025. Rising costs hurt automakers, homebuilders, data center developers and consumers. Domestic production has shrunk: only four primary aluminum smelters in the US remain in operation, down from 24 in 2000. Primary aluminum production is energy intensive, with electricity making up about 40% of production costs. American aluminum producer Centennial Aluminum and Emirates Global Aluminum of the United Arab Emirates plan to invest more than $4 billion in a new smelter in Inola, Oklahoma. The plant is expected to double U.S. production of the primary aluminum, but the project has faced local opposition over pollution, foreign ownership and public subsidies. Canada in turn is finding other buyers, with its aluminum shipments to Europe up 77% through August compared to the same period last year. Deeper trade ties with the European Union and demand for the lower-carbon metal could divert more Canadian supplies away from the US. The US dilemma is that tariffs designed to strengthen America's industrial independence risk Baker aluminum while encouraging Canada to expand its trade with other markets.

Trump's aluminum tariffs fail to break US dependence on Canada The US is desperately trying to revive its aluminum industry, but high tariffs on the Canadian metal are raising costs for American businesses and consumers without quickly solving the country's dependence on imports, the Wall Street Journal reports. Key factors to consider: Canada, home to the largest aluminum plants in the city of Saguenay, has accounted for about 70% of US aluminum imports in recent years, largely thanks to an abundance of hydropower that keeps production costs competitive. Trump raised tariffs on aluminum imports to 50%, pushing the extra amount US buyers pay for aluminum above global market prices to a record $2,116 per metric ton in January 2026, a full 65% higher than in June 2025. Rising costs hurt automakers, homebuilders, data center developers and consumers. Domestic production has shrunk: only four primary aluminum smelters in the US remain in operation, down from 24 in 2000. Primary aluminum production is energy intensive, with electricity making up about 40% of production costs. American aluminum producer Centennial Aluminum and Emirates Global Aluminum of the United Arab Emirates plan to invest more than $4 billion in a new smelter in Inola, Oklahoma. The plant is expected to double U.S. production of the primary aluminum, but the project has faced local opposition over pollution, foreign ownership and public subsidies. Canada in turn is finding other buyers, with its aluminum shipments to Europe up 77% through August compared to the same period last year. Deeper trade ties with the European Union and demand for the lower-carbon metal could divert more Canadian supplies away from the US. The US dilemma is that tariffs designed to strengthen America's industrial independence risk Baker aluminum while encouraging Canada to expand its trade with other markets.