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The premium being charged on aluminum products has reached an all-time high driven by hefty U.S. import tariffs and tight global supplies.

U.S. President Donald Trump doubled tariffs on aluminum imports to 50% in June with the aim of reviving investment in American manufacturing.

Aluminum is widely used in construction as well as power and the packaging of products.

Buyers of aluminum on the London Metal Exchange typically pay the prevailing market price, plus a premium that covers costs such as freight, tariffs, and taxes.

That premium has surged since June of this year, hitting a record 88.10 U.S. cents per pound or $1,942 U.S. a metric ton.

Added to the market price of aluminum that's currently at $2,850 U.S. a tonne, a buyer in the spot market is now paying $4,792 U.S. a ton for aluminum.

The current premium being charged on aluminum is up from $560 U.S. a ton at the start of 2025 before Trump returned to power.

Worsening the current situation is the fact that aluminum stocks are declining in the U.S. and tariffs on aluminum look to be permanent, without any exemptions for Canada, a leading producer of the industrial metal.

U.S. aluminum imports from Canada are down more than 70% this year.

The record high premium and rising price of aluminum threatens to impact costs passed onto consumers who are looking to purchase everything from a new house to a car.

Leading aluminum producers include Alcoa (NYSE: $AA ) and Rio Tinto (NYSE: $RIO ).