Canada to divert aluminum to Europe in response to Trump tariffs – National [Video]

The cost of aluminum for consumers in Europe buying on the physical market has dropped due to expectations that Canadian shipments under U.S. tariffs from Tuesday will be diverted, physical market traders said.

U.S. President Donald Trump has imposed 25 per cent tariffs on Mexican and most Canadian imports and ten per cent on goods from China starting on Tuesday, potentially kicking off a trade war that could dent global growth and reignite inflation.

Consumers on the physical market pay the London Metal Exchange (LME) benchmark aluminum CMAL3 plus a premium which covers taxes, transport and handling costs.

The European duty-paid premium EPDG25 aluminum contract on COMEX, that expires on Feb. 28 has dropped more than ten per cent to around $322 a ton from near $370 a ton at the start of January.

…