Investing.com -- The price premiums for aluminium in the physical market in the United States surged to a record high above $990 a metric ton on Tuesday. This dramatic increase occurred after President Donald Trump announced a doubling of the planned tariffs on Canadian aluminium to 50%.

Canadian smelters are the main source of primary and alloyed aluminium exports to the United States, accounting for 70% of the 3.92 million tons exported last year. This data was provided by Trade Data Monitor, an information provider.

The increase in tariffs is a response to the Canadian province of Ontario’s decision to impose a 25% tariff on electricity entering the U.S. The new tariffs will be effective from Wednesday.

When purchasing aluminium on the physical market, consumers typically pay the London Metal Exchange (LME) benchmark aluminium price, plus a premium. This additional cost covers taxes, transport, and handling fees.

The U.S. Midwest duty-paid aluminium premium saw a significant jump to 45 U.S. cents per lb, which is more than $990 a metric ton, on Tuesday. This premium has seen a rise of over 70% since the beginning of 2025.

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