The tariff policy on aluminum products implemented by the United States has had multiple impacts on the European aluminum industry, which are as follows:

1.Content of the tariff policy: The United States imposes high tariffs on primary aluminum and aluminum-intensive products, but scrap aluminum is excluded from the scope of taxation.

2.Triggering a supply shortage: American buyers have taken advantage of the policy loophole of tax exemption for scrap aluminum and snapped up European scrap aluminum at high prices, resulting in a soaring price of European scrap aluminum and a supply shortage.

3.Disrupting the stability of the supply chain: Scrap aluminum is an important raw material for aluminum production. The supply shortage has caused European domestic manufacturers to face the problem of tight raw material supply, pushed up production costs, affected production schedules and product deliveries, and thus weakened the competitiveness of the European aluminum industry.

4.Triggering market concerns: The supply shortage issue has also raised concerns about a broader sell-off in the European aluminum market. If the supply shortage continues to worsen, it may lead to a further decline in aluminum prices, thereby causing a greater impact on the entire industry.

In the face of this dilemma, the European aluminum industry is actively taking measures to deal with it, such as strengthening international cooperation to combat speculative behavior, domestic manufacturers improving the recycling rate of scrap aluminum, and exploring new supply channels for scrap aluminum.