Century Aluminum Shares Drop Over 1.6% on US 50%/25% Tariff Plan
The US administration will impose 50% tariffs on most steel and aluminum products in chapters 72 and 73 and 25% duties on other derivative items, with rates dropping to zero if metal content is under 15%. Shares of Century Aluminum Co. fell more than 1.6% in US postmarket trading on the announcement.
1. Tiered Tariff Structure
The administration will calculate a 50% duty on imports listed under harmonized tariff chapters 72 and most of chapter 73 based on full product value, while derivative items in other chapters will incur a 25% rate. Products with steel or aluminum content below 15% will be exempted entirely, and all rates may be revised if import volumes remain high or data indicates no improvement.
2. Immediate Market Reaction
Shares of Century Aluminum Co. plunged more than 1.6% in US postmarket trading following the announcement, reflecting investor concern over rising input costs and potential margin compression. Aluminum producers that rely on imported metal components may face higher costs and pricing pressure across their product lines.
3. Rationale and Outlook
The tiered system aims to simplify tariff calculations that had burdened US companies with complex duties assignments on items like dental floss cutters. Officials have signaled that the duty structure could be tightened or relaxed based on import trends and compliance with target reductions.