Tariffs, low stocks propel aluminium costs to records for US consumers

LONDON, Jan 8 (Reuters): Aluminium consumers in the United States are paying record high prices, significantly above the level import levies and transport costs would warrant, as tight supplies globally aggravate the impact of tariffs and low US inventories.

Needed by industries such as automotive, aerospace, packaging and construction, aluminium prices have knock-on effects for the wider economy as they raise manufacturing costs, squeeze margins and ultimately drive inflation.

President Donald Trump doubled tariffs on US aluminium imports to 50 per cent in June to encourage investment in local production. Since then aluminium costs for US consumers have risen by 40 per cent to above $5,200 a metric ton.

Apart from the disruption of US tariffs, aluminium traders have been monitoring supply shortfalls elsewhere.