Trump’s tariffs on aluminium imports may backfire on him
While Trump has tweeted that "trade wars are good, and easy to win", the main winner of this war may be the very country he wants to punish, writes Clyde Russell
Launceston — It is probably not what US President Donald Trump had in mind when imposing tariffs on aluminium imports, but it looks likely that some of the big winners from the 10% import tax will be China’s producers. While Chinese aluminium companies now face the same tariff obstacle as other exporters to the US they appear better placed to benefit from some of the (most likely) unintended consequences of the Trump administration’s policies. The Trump tariffs and measures against major Russian producer Rusal, along with a strike at Alcoa’s alumina and bauxite operations in Western Australia are combining to roil aluminium markets. Throw in Trump’s move to double the tariff on aluminium from Turkey and the result is a market that was most likely in a small supply deficit this year is now more concerned about the risk of supply disruptions.
Rusal, which produced 1.87-million tons of aluminium in the first half, is a major supplier not only to the US, but also to other countrie...
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