Critics point out that while the United States relies heavily on Canada for its aluminum imports, imposing a steep 50% tariff on Canadian products is increasing cost burdens for domestic industries.

According to the U.S. daily The Wall Street Journal (WSJ) on the 27th (local time), about 70% of U.S. aluminum imports have been supplied by Canada in recent years.

The biggest reason for the U.S. dependence on Canadian aluminum is electricity costs.

Aluminum smelting is an industry that requires massive amounts of power, with electricity bills accounting for about 40% of total production costs.

Quebec, Canada, secures affordable electricity based on abundant hydroelectric power, whereas the U.S. has lost price competitiveness as discounted electricity rate benefits previously offered to smelters have been reduced.

In fact, operating aluminum smelters in the U.S. have decreased from 24 in 2000 to 4 today.

Jerome Pecresse, head of the aluminum business at global mining company Rio Tinto, said, "You cannot find a power supply source in the U.S. with price competitiveness approaching that of Canada."

Nevertheless, U.S. President Donald Trump eliminated tariff exemptions on Canadian aluminum and raised the tariff rate to 50% under the pretext of protecting the domestic aluminum industry and expanding production.

Critics note that with the U.S. aluminum production base significantly weakened, the tariff burden is falling back on American companies and consumers.

Due to the high tariffs and other impacts, domestic aluminum prices in the U.S. have formed a premium at record highs compared to international benchmark prices.

In addition, price upward pressure has grown as trade restrictions on Russian aluminum and supply disruptions in the Persian Gulf region due to the war in Iran have overlapped.

The rise in aluminum prices is burdening the U.S. manufacturing industry overall.

Automaker Ford projected that its raw material costs will increase by up to $2 billion (approx. 2.6528 trillion KRW) this year.

Semiconductor equipment maker Applied Materials, auto parts maker Allison Transmission, and beverage can manufacturer Ball have told investors that they are passing higher aluminum costs on to customers.

Amid this situation, Canada is expanding its exports to the European market instead of the United States.

By August of this year, Canada's aluminum exports to Europe increased by 77% compared to the same period last year.

Karen Norton, deputy director at S&P Global Energy, forecasted, "It could become more difficult for the U.S. to secure Canadian aluminum than it is now."

(Photo: AP, Yonhap News)