The implementation of the United States’ tariff hike to 50 per cent on June 4 instantly prompted a 4.85 per cent surge in the US Midwest duty-paid premium on the physical market on June 5, clocked at USD 973, compared to USD 928 the previous day.
Image source: lme.com
Trump doubled the aluminium and steel tariff from 25 per cent to 50 per cent, creating severe tensions among key players in the industry worldwide, especially those heavily reliant on imports and exports. Ever since Donald Trump proposed tariffs on aluminium and steel with his second term of his presidency, the US Midwest duty-paid premium witnessed a gain of 190 per cent.
It is already known that the US heavily relies on imports when aluminium is in question. To date, the exports have been paying the premiums per the benchmark set by the London Metal Exchange (LME), and the premium costs cover the taxes and freight. However, the increased premium cost can directly affect the exporters and end-users.
Premium trends in last one month of 2025
As per the price range provided by investing.com, from May 6 to 13, the premiums represented a downward movement, when the price dropped from USD 843.32 to USD 829.41. In the same week, the premiums represented an upward movement on May 9, 2025, where the same rose to USD 844.00. The following week, the premiums represented a fluctuating movement but mainly a downward trend where the price further reduced to USD 822.01.
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