The US doubles steel and aluminum tariffs, industry executives issue warnings: demand will be affected.

Industry executives warn that the new 50% tariff on aluminum imports imposed by US President Trump may make it difficult for consumers to accept, leading to a decrease in demand. Derek Prichett, Senior Vice President of Global Metals Business at Novelis, expressed concerns at the 17th Harbor Aluminum Summit in Chicago, stating, "We are worried that this tax policy may lead to a decrease in demand, especially at the current tariff levels. Overall, this is indeed a disadvantage." He also pointed out that his company's business in Canada and the US is heavily affected by the tariffs. The company, headquartered in Atlanta, Georgia, is the largest manufacturer of flat-rolled aluminum products widely used in various industries, including automotive and aerospace. Trump has stated that these tariffs are meant to protect the profit margins of domestic manufacturers and stimulate investment in domestic production. However, the US still heavily relies on imports for producing a variety of products (from beverage cans to cars to airplanes). Many business executives believe that manufacturers may not be able to bear such high tariffs. Trump increased the tariff rate from 25% earlier this year. They believe that these tariffs will increase the cost of goods for American consumers. Hisham Alkooheji, Chief Marketing Officer of Aluminium Bahrain BSC, stated that the 50% tariff that came into effect on June 4 is a "real turning point" as it is difficult to pass this cost on to consumers. Trump's tough and constantly changing tariff measures have also intensified fluctuations in the metal market. Following Trump's announcement last Friday to double the tariffs, contract prices linked to delivering aluminum to manufacturers in the Midwest surged by 54% on the New York Mercantile Exchange on Monday, reaching the highest level since 2013, and maintained near this level on Wednesday as well.