Hydro-Extrusions Monitors Impact of Proposed 25% U.S. Aluminum Tariff

Hydro-Extrusions North America, the largest aluminum product manufacturer in the U.S., is closely monitoring the proposed 25% tariff on imported aluminum announced by the Trump administration. The tariff, set to take effect on March 12, would increase from the current 10% rate.

Hydro’s Cressona, Pennsylvania plant, which imports 85% of its raw aluminum from Canada, expects the tariff to impact costs significantly. The facility processes 200 million pounds of aluminum annually and exports to Europe and the Middle East. Rising aluminum prices have already led to lost global orders.

Despite the challenges, Hydro is seeking new business opportunities. Vice President and General Manager Mike Hammer stated that while the company faces difficulties, it is actively looking to offset losses by targeting customers shifting to domestic suppliers.

The Cressona plant, which employs 1,200 workers, does not anticipate immediate layoffs. However, Hammer expressed concerns about the long-term economic effects of the tariff. The plant’s aluminum is delivered by Reading & Northern Railroad in 2,000-pound ingots from Canada, which are melted and processed into billets for various industries, including automotive and construction.

The high cost of domestic aluminum smelting, driven by energy expenses, limits U.S. production capacity. Canada, utilizing hydropower, produces aluminum at a lower cost. Currently, only five aluminum smelters operate in the U.S., down from 23 two decades ago. Century Aluminum is constructing a $500 million solar-powered smelter in the Midwest as an alternative.

Hydro also raised concerns about foreign aluminum dumping in violation of the USMCA trade agreement, particularly through Mexico and the Dominican Republic. Hammer reiterated Hydro’s stance in favor of "free, fair, and rules-based trade" while acknowledging that some countries engage in unfair practices.

Local officials, including Schuylkill County Chamber of Commerce President Robert S. Carl Jr., are urging policymakers to address the tariff’s potential impact. Efforts are underway to engage with U.S. lawmakers to find solutions that balance trade fairness with economic stability.