As President Trump’s new metal tariffs take effect, U.S. companies are orchestrating a major pivot in their supply chains away from traditional North American partners toward Middle Eastern and South American sources.
The 25% tariff on Mexican and Canadian imports, along with a 10% levy on Chinese goods, is forcing a particular reshuffling in the aluminum sector, where Canada currently supplies 56% of U.S. imports – about 3.08 million metric tons annually.
Industry analysts predict significant price increases, with the U.S. Midwest premium potentially doubling to 50 cents per pound. Major producers like Alcoa are exploring plans to redirect Canadian materials to Europe while increasing imports from the UAE, Bahrain, and India.
Beyond aluminum, the copper and silver markets are also bracing for change, with Peru and Chile emerging as likely alternative suppliers. However, industry experts advise caution, noting the possibility of tariff expansion to other jurisdictions and the potential for broader trade policy shifts.