Aluminum exports from the United Arab Emirates to the US jumped in the first 11 days of March, US Commerce Department data showed, as buyers stocked up on supplies from their second-largest supplier before US tariffs took effect on Wednesday, reported by Reuters. The UAE exported 68,560.29 metric tons of aluminum to the US in March before the tariffs, compared with 16,124.88 metric tons in all of March 2024. Exports in March had already hit a nearly two-year high on a monthly basis.
Emirates Global Aluminium
President Donald Trump imposed a 25% tariff on steel and aluminium imports to the US in a bid to boost domestic production. In 2024, Canada supplied about 70% of the primary and alloyed aluminum consumed by the United States, while the UAE was the second-largest exporter, accounting for about 8% of total U.S. consumption last year. Canada, the largest foreign supplier of steel and aluminum to the United States, announced 25% tariffs on those metals, as well as on computers, sporting goods and other goods.
U.S. importers are likely to seek alternative sources given trade tensions with Canada and the threat of further tariff increases on Canadian imports, said Yulia Buchneva, director at Fitch Ratings. “On average, UAE manufacturers have lower business costs than Canadian manufacturers, according to CRU, while Emirates Global Aluminum is the lowest-cost manufacturer in the world,” Buchneva said, citing data from the consulting firm.
US Depends on Canadian Aluminum
She added that the UAE would be able to export the metal to the US profitably even with the tariff. EGA, one of the world’s largest aluminum producers, said on Wednesday that fluctuating aluminum prices were expected to persist into 2025 due to global trade tensions, adding that alumina markets were expected to normalize as more capacity is expected to come on stream this year.
US users are dependent on aluminum producers in Canada such as Alcoa and Rio Tinto, opening a new tab and will look for alternative supplies, analysts said. Target aluminum prices on the London Metal Exchange have risen 5% this year to $2,675 per metric ton, but have retreated from an eight-month peak of $2,736 reached in February.