The aluminum sector isn't moving to the U.S. despite tariffs — due to one key reason
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 09 2025
0mins
Source: CNBC
Impact of Tariffs on Aluminum Production: U.S. tariffs on imported aluminum have increased costs for consumers and reshaped trade flows, but they have not revived domestic production due to high energy prices, leading to smelter closures instead.
Consequences for Downstream Industries: The rising costs from tariffs are being passed on to consumers, with companies like Thule Group raising prices despite local manufacturing, while the aluminum industry struggles with competitive power access and declining demand in certain sectors.
Analyst Views on AA
Wall Street analysts forecast AA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AA is 46.00 USD with a low forecast of 33.00 USD and a high forecast of 58.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
6 Buy
2 Hold
2 Sell
Moderate Buy
Current: 63.140
Low
33.00
Averages
46.00
High
58.00
Current: 63.140
Low
33.00
Averages
46.00
High
58.00
About AA
Alcoa Corporation is a vertically integrated aluminum company comprised of bauxite mining, alumina refining, aluminum production (smelting and casting), and energy generation. The Company’s operations are comprised of two business segments: Alumina and Aluminum. The Alumina segment primarily consists of its bauxite mines and alumina refineries, which generally include the mining of bauxite and other aluminous ores, as well as the refining, production, and sale of smelter grade and non-metallurgical alumina. The alumina produced by this segment is sold to internal and external aluminum smelter customers; a portion of the alumina is sold to external customers who process it into industrial chemical products. The Aluminum segment consists of the Company’s aluminum smelting and casting operations along with the Company’s energy production assets in Brazil, Canada, and the United States. It has direct and indirect ownership of 26 operating locations across nine countries on six continents.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
