Aluminum prices are set to increase again after the White House announced another round of tariffs on aluminum and steel products. Aluminum is commonly used for door and window frames, storefronts and curtainwalls.
The White House stated that it would increase aluminum and steel tariffs from 25% to 50% on all countries. The current administration announced its intention to increase steel tariffs at a rally in Pennsylvania last week, where the president promoted an agreement between Nippon Steel and U.S. Steel. After the rally, the president stated that the increased tariffs would include aluminum products. The tariffs went into effect yesterday, June 4, 2025.
In a social media post, the president says his reasoning centered on bringing the aluminum and steel industries “back like never before.”
The current aluminum and steel tariffs have already led to cost fluctuations in the construction industry.
According to Metal Miner’s Monthly Metals Index (MMI) report, the construction MMI in May decreased as the industry braced for cost inflation and a potential slowdown. Furthermore, trade measures sent key building material costs sharply higher.
MMI’s report notes that aluminum prices found a short-term bottom in early April, as the market managed to stem the sharp declines that followed the implementation of aluminum tariffs. MMI officials write that “tariffs saw prices plunge to their lowest levels since August as markets reflected lower demand expectations. By April 9, however, the market began to stabilize around the $2,400/mt level.”
The aluminum tariffs have led some companies to announce plans to open facilities in the U.S., such as Emirates Global Aluminum. Last month, the company said it would build the first new primary aluminum production plant in the United States since 1980. The Oklahoma-based plant is expected to have a capacity of 600,000 tons of primary aluminum a year.
Not all companies are following Emirates’ lead. Ami Shivkar, principal analyst of aluminum markets at analytics firm Wood Mackenzie, says high energy costs in the U.S. are to blame, among other factors.
“Canadian, Norwegian and Middle Eastern aluminum smelters typically secure long-term energy contracts or operate captive power generation facilities,” Shivkar told CNBC. “U.S. smelter capacity, however, largely relies on short-term power contracts, placing it at a disadvantage.”
This means up to 85% of aluminum will remain imported, mainly from Canada.
The announcement of increased aluminum and steel tariffs follows a federal court halting the White House’s most aggressive tariffs. However, the tariffs were reinstated soon thereafter.