US Aluminum Association backs Trump’s tariffs to combat China’s “unfair” trade

Aluminum is expected to be among the metals most significantly affected by President-elect Donald Trump’s proposed 25% tariffs on imports from major suppliers, Canada and Mexico, according to US investment banking company Citigroup.

As the industry prepares for the impact of potential tariffs and continues to battle declining recycling rates, the Aluminum Association, a leading voice for US aluminum production, is doubling down on sustainability and trade advocacy.

Matt Meenan, vice president of external affairs for the Aluminum Association, tells Packaging Insights: “The Aluminum Association welcomes President-elect Trump’s efforts to support US manufacturing by tackling unfair global trade.”

“Unfair trade practices by China are the single largest threat to US aluminum producers. Responses should include stronger import monitoring and tariff harmonization in North America. Such actions will begin to address the US$60 billion in subsidies to Chinese aluminum firms that have roiled global markets and put some domestic aluminum assets out of business in recent years.”

According to recent data from the International Aluminum Association, China has been leading in global aluminum production, with nearly 60% of the world’s share in the past year.

Supply chain stability

Last month, the US president-elect announced his plan for big tariffs on the country’s largest trading partners. Such tariffs could have implications for the US aluminum supply chain, given that around 70% of the aluminum used in the US is imported, with Canada accounting for 60% of those imports.

The potential for tariffs has drawn sharp reactions from Mexico, with President Claudia Sheinbaum cautioning against the economic repercussions of such measures. A Citigroup analyst notes that any retaliatory tariffs from Mexico would likely have a bigger impact on US mills.

Citigroup says Trump’s policy plan to levy tariffs on metal imports will lead to higher US aluminum prices.“Continued tariff exemptions for imports of Canadian aluminum — originally negotiated by President Trump under the US-Mexico-Canada Agreement — are vitally important. Trade enforcement should be aggressive but targeted to reinforce the partnerships and supply chains that ensure US aluminum manufacturing dominance, starting with partners like Canada,” says Meenan.

“Open, tariff-free aluminum trade with Canada has underpinned much of the more than US$10 billion in domestic investment the industry has made over the past decade and ensured US aluminum manufacturing dominance. We will continue to work with the administration to tailor trade interventions to help our industry, and US manufacturing in general, succeed.”

Sustainability in focus

While the industry faces challenges from proposed tariffs on aluminum imports, sustainability remains a key focus. 

Aluminum’s status as an infinitely recyclable material has long made it a preferred choice for sustainable packaging. However, recycling rates for aluminum beverage cans in the US have dropped, according to the Aluminum Association’s new report.

“We’re pleased that recycling rates for some of our major markets, like building and construction as well as automotive, are upward of 90%. However, the recycling rate for aluminum beverage cans has declined to 43% in 2023 — well below the 20-year average of around 50%,” says Meenan.

“Aluminum cans remain the most sustainable and recycled beverage package across various metrics. But we want to do better. The Aluminum Association is actively working on efforts to increase recycling in the US, including advocating for state-level recycling refunds or container deposit programs and supporting federal legislation to improve recycling tracking and access.”