The world's biggest metal and %Mining companies are warning of steep costs being incurred from U.S. President Donald Trump's import %Tariffs.
Metals producers are struggling with commodity-specific tariffs that are as high as 50% on U.S. imports of %Steel, %Aluminum and %Copper, and 25% on imports of motor vehicles.
The result is millions of dollars of additional costs that are impacting companies' finances and operations.
Producers of copper and aluminum, as well as mine equipment manufacturers, say the tariffs are rapidly driving up their expenses.
Mining equipment company %Caterpillar (NYSE: $CAT) said on its recent earnings call that "the net impact of tariffs was around the top end of our estimated range for the quarter and is likely to be a more significant headwind to profitability in the second half of 2025."
Both %Alcoa (NYSE: $AA) and %RioTinto (NYSE: $RIO), North America's two major aluminum producers, reported millions of dollars in tariff costs following President Trump's June 4 decision to double tariffs on aluminum imports to 50%.
Alcoa, which exports around 70% of its Canadian-made products to America, incurred $115 million U.S. in second-quarter tariff costs.
Rio Tinto, which operates aluminum smelters in Canada, incurred $321 million U.S. of gross costs associated with U.S. tariffs on its Canadian-produced aluminum.
Freeport, the largest U.S. copper producer, estimated that tariffs will have a 5% negative impact on its costs this year.
President Trump has imposed a 50% tariff on copper that took effect on Aug. 1 and excluded less refined materials like copper ore, concentrates and cathodes.
Several metal and mining companies say they are now reviewing their operational decisions following the implementation of the U.S. tariffs.
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