UBS sees ‘limited’ impact on aluminum market from potential tariffs

After initially proposing 25% tariffs on U.S. aluminum imports from Canada and Mexico, President Donald Trump is now proposing 25% tariffs on all aluminum imports, with UBS noting to investors that the U.S. imports 80% of the primary aluminum it consumes. With the U.S. accounting for roughly 6% of global primary aluminum demand, UBS believes potentially tariffs are unlikely to materially impact global supply and demand dynamics and the LME aluminum price. Companies in the aluminum space include Alcoa (AA) and Century Aluminum (CENX).