Trump’s tariff hikes weigh heavily on US metals industry
Time:Fri, 22 Aug 2025 09:15:49 +0800
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The Trump administration’s steep tariff hikes have created mixed effects across the US metals sector. While steelmakers welcomed the June 4 increase of steel import tariffs from 25% to 50%, citing stronger domestic demand and stabilizing prices, other producers faced soaring costs.
Aluminum giants Alcoa and Rio Tinto reported Q2 tariff expenses of US$115 million and US$321 million, respectively, largely due to Canadian exports to the US.
Copper producer Freeport expects costs to rise about 5% as tariffs on copper take effect in August. Equipment manufacturer Caterpillar estimated an additional US$250-350 million in Q2 costs, with adjusted operating profit down 22% year-on-year.
Despite some support from steelmakers, the wider metals and mining industry continues to grapple with volatile costs, supply chain shifts, and weakened earnings, showing the deep operational pressures sparked by the tariff policy.
