Mexico's aluminum tariffs shake up market dynamics

The recent imposition of a 35% duty on P1020 aluminum imports by Mexico on April 26, has reverberated throughout the global primary and scrap aluminum markets.

The move has particularly impacted over 90% of Mexico’s P1020 imports, with countries like India, South Africa, Russia, and Argentina bearing the brunt. While exemptions have been granted to nations with existing free-trade agreements, such as the U.S., Canada, EU, and UK, the North American aluminum industry, especially Mexican consumers, faces profound implications ranging from increased costs, supply chain disruption, competitive disadvantages and economic impact.