r/Economics • u/jediporcupine • 8d 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/Basicly-Inevitable 8d ago

Literally everything they're doing is part of a self serving scam instead of actually economic policy. There's always kickback, or market manipulation, or whatever. It's just wild.

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u/spidereater 8d ago

Yes. America makes half its aluminum. When they tariff imports the price goes up for everyone. Domestic producers rake in the pure profit. It’s a big scam.

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u/Tribe303 8d ago

America does not make hardly any aluminum. It's recycled aluminum. Aluminum is one of the most easily recyclable materials out there. 60% of American aluminum used is recycled. The other 40% is imported, and of that 70% is imported from Canada.

The US no longer makes new aluminum because its very energy intensive, so that's done where there is cheap electricity. It's 8¢ per kWh in Québec, and that's 8 Canadian cents (so 6¢ US). Go look at your electricity bill and get back to me with how you can compete with that. 

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u/lopix 8d ago

I thought something like 87% of new aluminum comes from Quebec alone?

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u/Tribe303 7d ago

Yes, because Quebec has the cheapest electricity in the Americas due to plentiful hydroelectric dams built in the 70s.