Aluminium Trade Enters New Territory Amid Rising Tariffs and Copper Prices

The aluminium trade has entered new territory as it becomes a strategic variable in global commerce. Tariffs imposed on primary and semi-finished aluminium are affecting multiple downstream transactions, causing cost inflation for companies in North America.

Canada's decision to raise tariffs on US aluminium and steel to 50% from September 8 is having a significant impact on the automotive sector. The beverage industry is also feeling the effects, with Canadian beer can costs rising nearly 13% due to US aluminium tariffs.

In India, manufacturers are responding to the rising cost of copper by examining aluminium as an alternative in applications such as motor windings and condenser coils. However, India's aluminium policy presents a paradox, with a 8.25% import duty on primary aluminium raising input costs for downstream manufacturers.