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Aluminum costs (with tariffs) in the US are ~50% higher than Europe and Japan. Who does that help?

Airyaman

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Well, with the exception of the US Treasury, it helps no one!

Seriously, aluminum is in so much of what we use, from cars to drinks to toys to building components.

And remember the big deal about Tesla being mostly American made, so tariffs are less of an effect for them? Many of their vehicles have aluminum frames!

So tell me, who does it help when US companies and consumers have to pay around $4200/ton while Japanese and European ones pay ~$2600?


 
Airyaman said:
So tell me, who does it help when US companies and consumers have to pay around $4200/ton while Japanese and European ones pay ~$2600?
Click to expand...

It helps pay for tax cuts, most of which go to Trump and his buddies.

It helps Trump take bribes from negotiate with other countries.
 
There has been significant investment in new steel mills in the US, with over $10 billion committed to building new facilities and modernizing existing ones. When all this comes online, our reliance on foreign producers will lessen. The same is happening in the aluminum industry.

This helps the US. That last thing we need, in regard to national security, is to be dependent upon other countries for our steel and aluminum.
 
I notice you bring zero references. And this is about aluminum, not steel.

Don't trust you, bro.
 
I was going to ask you for evidence of these big investments in aluminum processing but then I realized that you probably kept it in that same safe where you kept your incontrovertible proof of massive 2020 electoral fraud, so we'll probably never see a shred of it.
 
There have been additional investments in aluminum production.

But those were in 2024. You know, when the other guy was president.
 
My sentiments exactly.
 
It's almost as if Donnie 2 Dolls doesn't understand what tariffs do...
 
Would love see your source...

This is definitely not true about aluminum. The CEO of Alcoa has been very clear that there is not enough electricity available in the US to significantly increase aluminum production.

Alcoa CEO appeals to Trump administration to drop tariffs on Canadian aluminum imports

Canada is by far the biggest foreign supplier to the U.S., accounting for 2.9 million tonnes a year
www.theglobeandmail.com
 
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$4B Plan for First US Smelter in 45 Years

Emirates Global Aluminium has a site in Oklahoma and intends to install 600,000 metric tons of primary aluminum capacity – nearly double the current domestic output.
www.americanmachinist.com
 
Shhh. You are robbing MAGA of their leaders one great achievement.
 
That's not exactly true, though. He's talking about smelting (primary production). The vast majority of aluminum produced in the US is now secondary production - recycled, which takes much less energy and has really kept the industry afloat.

But if the goal is to be self-reliant, then yes, we should be looking at increasing primary production down the road, which will likely require some government involvement and help on energy production (e.g. new/upgraded hydroelectric) and contracts.

That is, we can increase production in the US by continued investment in secondary production and reprocessing while working on more long-term strategies to increase primary production.
 
He is talking about the aluminum required for defense, cars, heavy equipment not recycled for cans or tin foil. It is the energy requirements for new smelters that is the issue and, as he says, you would need multiple new Hoover Dams to provide it. That is not happening in a matter of years but rather decades.

Alcoa is an American company that owns aluminum manufacturing operations in Canada. They make the aluminum in Canada and ship it to themselves in the US . Now they are paying 35% more for their own stuff so they are selling their aluminum to other companies in other countries. That is flat out stupid and not in the best interest of the US.
 
Callen said:
He is talking about the aluminum required for defense, cars, heavy equipment not recycled for cans or tin foil.
Click to expand...
Like I said, he's talking about primary production.

Callen said:
It is the energy requirements for new smelters that is the issue
Click to expand...
That may be your issue, but it isn't "the" issue. The vast majority of our aluminum demand, some 70-80%, can be met with secondary aluminum.

Callen said:
and, as he says, you would need multiple new Hoover Dams to provide it. That is not happening in a matter of years but rather decades.
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Though we really don't need to build a bunch of Hoover Dams. In terms of hydroelectric power, the best use of resources is on upgrading and modernizing what we have.

Sounds awful. I bet their CEO would say just about anything to get that changed.
 
We'll see if this is reality or Foxconn .

In the meantime, how does that help US companies who need aluminum now, and don't want to pay $4200/ton?
 
Taylor said:
Though we really don't need to build a bunch of Hoover Dams. In terms of hydroelectric power, the best use of resources is on upgrading and modernizing what we h
Click to expand...
I'm going with the CEO
 
LOL you are totally deluded.. that is not how economics work.

You do realize that a new aluminum plant takes 5 to 10 years to build right?

Modernizing existing ones take at least 5 years..

In the meantime, the US consumer will be paying significant more for pretty much every single good they consume.
 
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