Industrial

What's the Tariff on Aluminum (Unwrought)?

Primary aluminum from Canada, UAE, Russia.

💡
The 25% tariff on Aluminum (Unwrought) is paid by American importers, not foreign manufacturers. Your 1 ton aluminum now costs $3,000 instead of $2,400 — that's $600 more, or 25% of the sticker price going directly to tariff taxes.

Current Tariff Rate

25%

Pre-2025 Rate

10%

Rate Increase

+15pp

Price Impact

+25%

+$600

Real-World Price Impact

Before Tariffs

$2,400

1 ton aluminum

After Tariffs

$3,000

1 ton aluminum

That's $600 more per unit — a 25% price increase paid by the American buyer.

Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary — manufacturers may absorb some costs, shift production, or adjust margins.

The Story Behind This Tariff

Aluminum tariffs tell the story of America's vanished smelting industry. The US once produced 35% of the world's primary aluminum; today it's under 3%, with only five operating smelters remaining. The 25% Section 232 tariff, originally imposed in 2018, was designed to reverse this decline — but seven years later, not a single new smelter has been built. Aluminum smelting requires massive, cheap electricity, and US power costs make new capacity uneconomical regardless of tariff levels. Canada, historically the largest US aluminum supplier due to cheap Quebec hydropower, lost its exemption in 2025. The UAE, Russia (via sanctions complications), and Middle Eastern producers fill the gap. The tariff's most visible impact is on the beverage industry — aluminum cans cost more, raising beer and soda prices. The construction and automotive sectors, increasingly using aluminum for lightweighting, face sustained cost headwinds.

📦 Supply Chain

Primary Origin

CA

Made in USA

12%

Import Volume

$18.5B

Alternatives

UAE, Bahrain, India (all face 10% baseline)

📅 Tariff Timeline

2018

Section 232 tariff on aluminum imports

10%

2020

Rate increased to match steel

25% (some countries)

2022

Canada exemption via quota arrangement

0% (under quota)

2025

All exemptions removed — universal 25%

25%

👥 Consumer Impact

Households Affected

130M

Annual Cost Per Household

$75

💡 Did You Know?

  • The US had 23 aluminum smelters in 2000 — today only 5 remain operational, and zero new ones have been built since tariffs began
  • Smelting aluminum requires enormous electricity — a single smelter uses as much power as a city of 50,000 people
  • Canada's Quebec hydropower makes its aluminum among the greenest in the world — the tariff penalizes clean production

Tariff Details

HTS Code
7601.10
Current Rate
25%
Pre-2025 Rate
10%
Tariff Type
Section 232

Legal Authority

Section 232 (National Security)

Effective: Various (2018-2025)

Tariffs on imports deemed a threat to national security

The tariff on Aluminum (Unwrought) is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.

Who Actually Pays This Tariff?

Despite claims that tariffs are paid by foreign countries, the 25% tariff on Aluminum (Unwrought) is paid by American importers — US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.

  • ✓ The foreign seller receives the same price as before
  • ✓ The US importer pays 25% of the customs value to CBP
  • ✓ The retailer marks up the higher landed cost
  • ✓ You pay more at the register: $2,400 → $3,000

Related Products in Industrial

🔍 Dig Deeper

See the Full Picture

Tariffs affect thousands of products. See how much they're costing your household.