Aluminum premium slips as U.S. set to cut tariffs on Canada metal

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeCommoditiesMiningAluminum premium slips as U.S. set to cut tariffs on Canada metalThe September U.S. Midwest premium slumped 8.2% to US$0.95 a pound on ThursdayAuthor of the article:Coils of steel are seen in a yard outside one of ArcelorMittal Dofasco's steel manufacturing buildings in Hamilton on June 4, 2025. Photo by COLE BURSTON/AFP via Getty ImagesA key regional price benchmark for aluminum delivered to the U.S. market tumbled after the Trump administration indicated it would lower tariffs on certain Canadian exports of aluminum.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe September U.S. Midwest premium slumped 8.2 per cent to 95 cents U.S. a pound on Thursday, according to pricing data from Platts. The October and November contracts dropped more than 12 per cent after the tariff announcement, the data showed. The Midwest premium is the amount added to global benchmarks to deliver aluminum to that region.Canada accounts for more than half of imports, according to data from USGS. Tariffs on some Canadian products could drop to 25 per cent from 50 per cent if the two countries reach a trade deal.The Midwest premium — also a proxy for the amount of money U.S. manufacturers pay to make products such as appliances, beverage cans and automobiles — has climbed sharply higher to successive record highs since U.S. President Donald Trump’s punitive 50 per cent tariff took effect in June last year. Another supply shock stemming from the Iran War helped boost the regional aluminum premium by nearly 100 per cent.Morgan Stanley analysts led by Amy Gower said in a Thursday note that Canada has redirected more metal to Europe since U.S. tariffs were introduced.The potential cut of tariffs on Canadian aluminum to 25 per cent would encourage more flows to the U.S. instead of Europe, but Canada still couldn’t meet all U.S. demand. The U.S. would therefore need additional imports subject to the 50 per cent tariff, limiting the potential decline in the Midwest premium, they said.Details of the tentative deal between the U.S. and Canada have yet to be finalized and are not expected to apply across the board. For aluminum and steel, different rates could apply to some derivative products that include those metals, Bloomberg reported, citing people familiar with the matter who requested anonymity to discuss the tentative terms of the agreement.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.