Aluminum giant sounds alarm over Trump’s new tariff threat, outlines where higher prices will be felt
Cars and aluminum cans will see price hikes 'nearly immediately,' warns Alcoa CEO Bill Oplinger
Alcoa CEO seeks exemption from Trump's 25% tariff on Canadian aluminum
Alcoa Corporation CEO Bill Oplinger expresses concerns over President Trump's 25% steel and aluminum tariffs slated to take effect and his focus on requesting an exemption.
The CEO of an aluminum giant warned FOX Business viewers that President Donald Trump's imminent 50% tariffs on steel and aluminum imports could soon give Americans a spell of sticker shock when shopping for certain items.
"A 50% tariff will increase the price of aluminum across the board. It happens nearly immediately," Alcoa CEO Bill Oplinger told Lauren Simonetti on Tuesday.
Alcoa owns two of the four smelters in the U.S. and relies heavily on aluminum imports from Canada. The company is seeking an exemption from Trump's tariffs.
"[Higher aluminum prices will] get reflected in higher prices in our customers' products. Whether that's cars, beer cans, [the tariffs] will get reflected as a higher price."
TRUMP THREATENS FURTHER TARIFFS ON CANADIAN STEEL, ALUMINUM, ELECTRICITY, VEHICLES
The Alcoa Corp. Kwinana Alumina Refinery in Kwinana, Australia, on Wednesday, Feb. 28, 2024. (Philip Gostelow/Bloomberg via Getty Images / Getty Images)
While Oplinger said it's "hard to say" whether consumers can handle the jump, he added that Alcoa imports 85% of its aluminum from outside the U.S.
When asked if he was "worried" about the 50% tariff going into effect on Wednesday morning, he said, "We're running a global company. We will ensure that we have our trade flows go to the right places."
He added that the situation highlights the need for a "critically important" comprehensive energy policy in the United States.
"The retaliatory nature of these tariffs is really based on energy, and it's important for us to have low-cost, long-term energy in order for us to make aluminum in the United States, and we hope it gets resolved quickly."
TRUMP TO PUT TARIFF EXEMPTIONS ON CERTAIN GOODS FROM CANADA, MEXICO
CEO warns Trump's looming 50% aluminum tariff will raise price of cars, cans 'nearly immediately'
Alcoa Corporation CEO Bill Oplinger joins 'Varney & Co.' and reacts to news that President Donald Trump intends to double tariffs on steel and aluminum imports to 50%.
Oplinger had already expressed concerns over proposed 25% tariffs on steel and aluminum imports from Canada before that number doubled on Tuesday.
He told Simonetti in an earlier segment of "Varney & Co." that, while Trump's "drill, baby, drill" plan surrounding natural resources is "absolutely supportive of having lower energy prices," high energy costs have kept aluminum production at bay in the U.S.
"As energy costs come down, we would certainly consider the U.S. as a place for further investment in the future, but it won't be based on tariffs."
Trump instructed Commerce Secretary Howard Lutnick to double the tariffs to 50% after Ontario Premier Doug Ford placed a 25% tariff on electricity coming into the U.S. states of Michigan, New York and Minnesota the day prior.
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FOX Business' Danielle Wallace contributed to this report.
