Key Takeaways:
Commerce Secretary Howard Lutnick said aluminum manufacturing is returning to America, citing the impact of Trump administration tariffs on domestic production.
The US is rebuilding primary aluminum capacity as tariffs redirect global supply chains, Commerce Secretary Howard Lutnick said July 28, as Century Aluminum Co. expands its Mt. Holly smelter in South Carolina.
"Aluminum is coming back to America," Lutnick said on FOX Business's "The Bottom Line," without detailing specific production targets or a timeline for the ramp-up.
Century Aluminum is adding 150 jobs in Berkeley County as part of the Mt. Holly expansion, which will boost domestic primary aluminum output. The US aluminum industry has shrunk significantly over the past two decades as high energy costs and foreign competition forced widespread plant closures, leaving only a handful of operating smelters.
The revival push comes as the Trump administration intensifies trade talks ahead of a tariff deadline, with aluminum imports facing potential levies that would affect billions of dollars in annual cross-border trade. Canada, the largest foreign supplier of aluminum to the US, ships millions of metric tons annually to American buyers.
Smelters Return After Decades of Decline
The Mt. Holly expansion marks one of the few additions to US smelting capacity in recent years. Century Aluminum, one of the largest US producers alongside Alcoa Corp., operates multiple smelters including Mt. Holly. The company's shares have moved on trade policy developments as investors weigh the impact of tariffs on domestic producers versus downstream manufacturers.
The previous Section 232 tariffs on aluminum, imposed in 2018, set a 10% levy on most imports, though major suppliers including Canada and Mexico received exemptions that have since been subject to renegotiation. The current administration has signaled a willingness to tighten those terms, using tariff policy as leverage in broader trade negotiations.
What Tariffs Mean for Supply Chains
A renewed tariff push targeting Canadian aluminum would affect the largest source of US imports. Canada supplies the majority of America's primary aluminum needs, with shipments flowing across the border to smelters and fabricators in the Midwest and Northeast.
Any new levy would raise costs for US manufacturers that rely on imported metal, including automakers and construction companies, potentially offsetting benefits for domestic smelters. The aluminum supply chain is deeply integrated across North America, with Canadian smelters using US-sourced scrap and US fabricators processing Canadian primary metal.
The broader trade agenda faces a key test as negotiations intensify ahead of a looming deadline, with markets watching for signs of escalation or compromise. The outcome will determine whether Lutnick's prediction of a domestic aluminum revival translates into sustained capacity growth or remains limited to isolated expansions like Mt. Holly.
This article is for informational purposes only and does not constitute investment advice.
