Geneva accord presses pause on US-China tariff tensions, but can it revive US domestic aluminium?
China and the US struck a trade deal on May 12 in Geneva, prompting a collective sigh of relief from businesses and exporters, not just at home, but across the globe. After almost 90 days of retaliatory tariffs and spiralling economic tension, this long-awaited breakthrough spells hope for the aluminium sector that had been buckling under pressure.
Aluminium imports into the US from China peaked in 2022 but have trended downward since. The ongoing calendar year has only intensified the decline, as trade tensions escalated. While the original optimism around steel and aluminium tariffs centred on strengthening domestic production business, the compounding layers of tariffs, first by the US, and then countered by other nations, left a visible dent on the global trade landscape, with American businesses far from immune.
With only four smelters left standing in 2024, the US aluminium scene isn’t just quiet — it’s practically on mute. The pivot to secondary aluminium was seen as a smart hedge, but recent plant shutdowns and job losses across major recycled aluminium producers are casting doubt on how sustainable this Plan B really is.
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