U.S. aluminum and steel futures surged on Monday (2nd) after President Trump announced that he would double the import tariffs on both materials to 50% this week. According to data from the New York Mercantile Exchange (Comex), aluminum futures 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 going forward.

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

The Trump administration stated that this move will protect the profit margins of domestic aluminum and steel producers and encourage investments in new capacity. Following Trump's announcement to raise tariffs last Friday, the stock prices of U.S. steel and aluminum manufacturers surged in after-hours trading.

However, construction industry players warn that the tariffs on steel and aluminum, which have risen from the previous 10% to 25% and are now increasing to 50%, could further escalate the costs of key construction materials. Comex steel futures rose more than 8% on Monday morning local time, and although market liquidity is low, the volatility in these futures prices indicates that the aluminum market will bear the brunt of the tariff pressure.

According to Morgan Stanley data, more than 80% of aluminum in the U.S. market relies on imports, while the import ratio for U.S. steel is only about 20%. Citigroup analysts noted in an email report, “We expect prices to continue to rise due to insufficient domestic supply.” For the aluminum market, the tariffs have mostly just increased the burden on consumers, becoming a sort of “consumption tax.” The London Metal Exchange's aluminum benchmark contract rose by 0.4% on Monday at 1:35 PM local time, reaching $2,454 per ton.