Tiwai smelter possible loser as Trump follows through on metals tariffs

Tuesday, 11 February 2025

The Tiwai Point aluminium smelter has secured some tariff discounts because of the quality of its aluminium, it has been revealed.

Rio Tinto’s Tiwai Point aluminium smelter looks likely to be most at risk of being impacted by new US tariffs of metals, after details were confirmed by US president Donald Trump on Tuesday.

CNN reported that Trump was imposing a 25% tariff on all steel and aluminium imports into the United States “with no exceptions or exemptions”.

However, it indicated that would not be on top of existing metals tariffs.

Steel exports from New Zealand to the US have been subject to a 25% tariff since 2018.

But the change, as it’s being reported in the US, could see the tariff on New Zealand aluminium exports to the US rise from a headline rate of 10% to 25%.

Rio Tinto has been contacted for comment.

It is understood some of its aluminium exports to the US have comprised high-grade aluminium for the defence industry for which there are few other suppliers, and that it has in past secured discounted duties in reflection of that.

Trade Minister Todd McClay: “We've just got to be mindful that countries will do these things from time to time.”

Trade Minister Todd McClay confirmed he understood there was “a slight exemption of the very high quality stuff”.

New Zealand exported US$39 million (NZ$70 million) of aluminium to the US in 2023, according to UN Comtrade figures quoted by Trading Economics.

McClay said the Government estimated the new tariffs would cost exporters about $5m a year, describing that as not significant compared to the amount of beef and wine exporters sold to the US.

The Government would look into trying to seek an exemption to the new rules, he said.

“There could be a case to be made because of the quality of our aluminium, because it is very, very high quality that we know is needed in the US.”

“But we've just got to be mindful that countries will do these things from time to time”, he said.

More broadly, the Government would be making the case that New Zealand’s trade with the US was very well balanced, he said.

“It's complementary. We buy and sell more or less the same from each other.

“New Zealand products going into the US are tariffed about six times higher than American products coming here.”