Trump's Tariffs on Mexico and Canada to Impact Aluminum and Steel

According to Citigroup analysts, the metals most affected by Trump's threat to impose a 25% tariff on imports from his largest suppliers, Canada and Mexico, will be aluminum and steel. Analysts led by Alexander Hacking state that these two trading partners of the U.S. are the largest suppliers of these metals, and Trump's plan to impose tariffs on their imports will lead to an increase in steel and aluminum prices across the U.S.

The U.S. meets approximately 70% of its aluminum needs from abroad, with 60% of that coming from Canada. Steel imports account for 24% of American supply, with Canada providing a quarter of that amount and Mexico contributing around 15%.

Analysts have indicated that the 25% tariff announced by Trump on Monday is expected to cause steel prices to rise by $100 to $150 per short ton. For U.S. aluminum prices, the Midwest premium could more than double compared to the London Metal Exchange, potentially rising up to 50 cents—benefiting six U.S. foundries. However, analysts warned that "restructuring this supply chain could take years."