Jpmorgan Chase: The remaining 50% of tariffs are all reflected in the premium of Alcoa over LME Aluminum
June 14, 2025
Jpmorgan Chase pointed out that the United States unexpectedly doubled the aluminum tariff to 50% last week, which has brought huge uncertainty to the industry. The 50% tariff does not seem to be fully reflected in the premium of aluminium prices in the Midwestern United States over the London aluminium price. Although the existing inventory in the United States can form a short-term buffer, it will soon be exhausted. Given the uncertainty over whether the 50% tariff will eventually be abolished or whether key exemptions will ease the pressure, the premium of aluminium in the two regions seems to be paralyzed.
