US aluminium tariffs continue to push up costs for manufacturers and consumers

US tariffs on aluminium and steel are continuing to add to manufacturing costs and consumer prices, even as businesses adjust to the changes in trade policy. The latest consumer price index data showed that high energy prices were also contributing to inflation, but tariffs remain another source of upward pressure across several sectors.

Minnesota-based bicycle parts manufacturer Wolf Tooth Components has experienced the impact of higher import costs. The company uses aluminium in many of its products, and co-owner Brendan Moore said some suppliers increased prices soon after US President Donald Trump announced expanded aluminium and steel tariffs. Others passed on the additional costs gradually as the tariffs took effect.

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Introduced in March 2018, the US Section 232 tariffs aimed to reduce reliance on imported aluminium, revive domestic smelting capacity, attract investment and rebuild a resilient supply chain for critical sectors. The policy was strengthened in 2025 with a 50 per cent tariff on aluminium imports from most countries, adding further pressure on overseas suppliers while supporting domestic producers.

Moore said suppliers are now more confident about incorporating the tariffs into their pricing as the policy becomes clearer. In his words, “Now it seems like the tariffs that are in now are pretty legally durable. So we can plan around that.” 

Kathy Bostjancic, chief economist at Nationwide, said higher prices were also affecting tariff-sensitive products, including automobiles, electronics, household supplies, clothing, jewellery and personal care goods. She expects the initial impact of tariffs on prices to begin easing next year.

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However, Jason Miller, a supply chain management professor at Michigan State University, said tariffs could allow domestic manufacturers to raise prices over a longer period by reducing competition from imports. He said, “They’re now in a better bargaining position with their customers to keep passing on higher costs, and/or to even just continue to raise their prices, because they’re facing less competition.” 

This could keep tariffs contributing to inflation for years after their introduction.