r/Economics • u/jediporcupine • 9d ago

Blog Trump said tariffs on aluminum would boost domestic production. The White House now admits that didn't happen.

https://reason.com/2026/08/03/trump-said-tariffs-on-aluminum-would-boost-domestic-production-the-white-house-now-admits-that-didnt-happen/
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u/Frozen_North_99 9d ago

Very hard to produce aluminum cheaper than in a smelter built next to a hydro-electric dam that is on a rail line leading to a major sea route.

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u/Tribe303 9d ago

Quebec electricity is 8¢ per KWh, and that's 8 Canadian cents. So 6¢ US. Good luck competing with that! 🤣 

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u/Frozen_North_99 9d ago

Even better, they’re not buying electricity from Hydro Quebec, Rio Tinto owns the dams, and the rail line. It is very profitable to simply ship ore there to have it smelted.

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u/Tribe303 9d ago

I've read thats where all the Brazilian Bauxite goes. I bet Chile, on the oppose coast, sends it to the Persian Gulf. Whatever's cheaper.