A key regional price benchmark for aluminum delivered to the US market tumbled after the Trump administration indicated it would lower tariffs on certain Canadian exports of aluminum.

The premium, which reflects the extra cost buyers pay for metal shipped into the US, fell sharply following reports that President Trump is prepared to reduce the 10% tariff currently imposed on Canadian aluminum imports.

Market participants had been closely watching trade policy developments between the US and Canada, as the tariff has significantly impacted cross-border flows of aluminum. The potential rollback signals a possible easing of trade tensions that have affected North American metal markets.

The decision comes amid ongoing negotiations and follows pressure from US steel and aluminum producers who have argued that Canadian imports undercut domestic prices. However, many in the industry view the tariff reduction as a positive step toward stabilizing supply chains.