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Aluminum Costs Climb Ahead of Tariffs; Canadian Trucker TFI Moving to U.S. By Liz Young

Aluminum imports are getting more expensive-even before new tariffs go into effect.

The WSJ's Kirk Maltais reports that manufacturers of automobiles, beverage cans and home appliances are rushing to stock up on aluminum before the Trump administration raises a 10% tariff on the metal to 25% next month. The U.S. imports nearly 60% of aluminum used in the country, while the amount of the metal produced here continues to diminish.

Increased anxiety about the availability of aluminum is driving up the surcharge buyers pay to get the material transported to their facilities from ports. That fee, known as the "Midwest premium," is essentially a delivery charge for aluminum shipped within the U.S. It has climbed 65% from the start of the year and surged nearly 30% since the White House confirmed new metal tariffs, according to Platts, a part of S&P Global Commodity Insights.

The rising costs show how President Trump's tariff policies can feed into inflation even before the duties have gone into effect. Aluminum buyers are expected to pass a lot of the additional costs onto consumers, but higher prices could dent consumer demand, leaving companies elsewhere in the metal supply chain in a pinch.

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Economy & Trade

Trucker TFI International plans to move to the U.S. as more Canadian companies consider shifting their operations amid President Trump's tariff threats. The WSJ's Paul Vieira and Connor Hart report that the company has operated in the U.S. since 2011 and about 70% of its operations are south of the border . CEO Alain Bédard said moving to the U.S. would better align the company with its "shareholder base and commercial presence."

The Trump administration's proposals to place new tariffs on Canadian imports have prompted companies to delay expansion plans, put hiring on hold and revise their sales outlook downward, an early sign of how the levies could reshape crossborder supply chains. KPMG Canada said nearly half of business leaders the firm surveyed recently plan to shift investments to the U.S. or set up production operations to secure tariff-free access to the U.S. market and reduce costs.

Number of the Day Quotable In Other News

U.S. jobless claims rose to 219,000 last week. (MarketWatch)

President Trump is making plans to disband the governing board that oversees the U.S. Postal Service. (WSJ)

Mercedes-Benz will cut jobs and shift some production from Germany to lower-cost countries. (WSJ)

Airbus expects to deliver more planes to customers this year than in 2024. (WSJ)

E-commerce giant Alibaba Group reported revenue rose more than expected in the latest quarter. (WSJ)

Online furniture seller Wayfair posted a wider-than-expected loss of $128 million in the latest quarter. (MarketWatch)

German shoe brand Birkenstock's revenue climbed in its fiscal first quarter. (WSJ)

Hasbro forecasts revenue will tick up slightly this year. (WSJ)

French grocer Carrefour anticipates subdued earnings growth for this year. (WSJ)

Grocer H-E-B opened its third e-commerce fulfillment center in the Houston area. (Houston Chronicle)

Stop & Shop employees are threatening to strike over a contract dispute at one of the grocer's Massachusetts warehouses. (Providence Journal)

China is renewing efforts to attract foreign businesses after inbound investment tumbled last year. (Bloomberg)

HMM is looking to buy South Korea's SK Shipping. (ShippingWatch)

DHL sold less-than-truckload carrier Standard Forwarding to transportation company Sakaem Holdings. (Trucking Dive)

Executive Insights

Here is our weekly roundup of stories from across WSJ Pro that we think you'll find useful.

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Follow the WSJ Logistics Report team: @bylizyoung and @pdberger . Follow the WSJ Logistics Report on X at @WSJLogistics .

This article is a text version of a Wall Street Journal newsletter published earlier today.

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February 21, 2025 07:02 ET (12:02 GMT)

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