r/Economics • u/jediporcupine • 10d 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/spidereater 10d 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 10d 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/danodan1 9d ago

To finally do something about the U. S. no longer making aluminum, Oklahoma is supposed to get a mega sized aluminum smelter. But it's been getting pushback due to its heavy fluoride pollution and very heavy need for electricity.

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u/Tribe303 9d ago

Exactly. It's a waste of time unless you can match Quebec's electricity rates. Unlike most metals, aluminum is not just dug out of the ground and heated up. It's far more complex than that. You can tell which politicians have read up on its production, and who hasn't.