U.S. aluminum and steel futures prices surged on Monday (2nd) after President Trump announced a doubling of the import tariffs on both to 50%. According to data from the New York Mercantile Exchange (Comex), aluminum futures contracts in the Midwest U.S. skyrocketed by 54%, reaching the highest level since at least 2013, indicating that U.S. manufacturers will face higher raw material costs in the future.

Aluminum is widely used in products such as beverage cans, engine parts, and window frames. Currently, the premium for aluminum in the Midwest market has reached 58 cents per pound, equivalent to about $1,280 per metric ton, significantly higher than the London benchmark price, meaning U.S. buyers may have to pay about 50% more than international competitors to obtain raw materials.

The Trump administration stated that this move would protect the profit margins of domestic aluminum and steel manufacturers and encourage investment in new production capacities. Following the tariff increase announcement last Friday, stocks of U.S. steel and aluminum manufacturers surged in after-hours trading. However, construction industry stakeholders warned that the steel and aluminum tariffs have risen from 10% to 25%, and now to 50%, which could further inflate costs for key construction materials.

Comex steel futures prices rose over 8% on Monday morning local time, and although market liquidity was low, the fluctuations in these futures prices indicate that the aluminum market will bear the brunt of the tariff pressures. According to Morgan Stanley data, over 80% of aluminum in the U.S. market relies on imports, compared to only about 20% for steel.

Citi Group analysts noted in an email report, "We expect prices to continue rising due to insufficient domestic supply." Particularly for the aluminum market, tariffs have mostly increased the burden on consumers, effectively becoming a form of 'consumption tax.' The benchmark aluminum contract on the London Metal Exchange rose 0.4% local time at 1:35 PM, reaching $2,454 per ton.