Alcoa says high US aluminum prices offset Trump tariff costs

Alcoa Corp. said US tariffs on Canadian aluminum cost it $69 million more than the prior quarter, although higher domestic prices for the metal helped offset the hit.

The top US aluminum producer said Wednesday that rising US prices have more than made up for the “net unfavorable impact” of tariffs on imports of the metal from its Canadian smelters. It also said it’s returning to normal aluminum shipments from Canada to the US, after reducing deliveries earlier this year.

Aluminum prices in the US have been rising faster than other international markets for much of this year due to President Donald Trump’s trade measures. The so-called US Midwest premium – the amount added to global benchmarks to deliver the metal to that region – has jumped 113% since early June.

Still, the Pittsburgh-based company’s additional costs show the continued impacts of the Trump’s trade measures on the industry. Alcoa said its tariff costs are expected to increase by a further $50 million in the current quarter.

The rise in US aluminum prices “reflects declining inventory and aluminum imports,” Alcoa chief executive officer William Oplinger said on an earnings call on Wednesday.

Trump set 25% import duties on aluminum in March and doubled them in June, saying tariffs are necessary to protect the American industry and revitalize production. Alcoa said in July that tariff costs on its shipments amounted to $115 million in the second quarter.

The company also projected $20 million in “unfavorable impacts” tied to restart issues at the San Ciprián smelter in Spain and lower third-party energy sales.

(By Jacob Lorinc)