Are tariffs the answer to save America’s declining aluminium industry?

Published

3 days ago

March 31, 2025

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On the banks of the Ohio River in a rural corner of one of America’s poorest states sit two factories, one next to the other.

One is open. The other is shuttered. Both cut to the heart of what Donald Trump hopes he can do to transform America’s industrial base.

Ravenswood, West Virginia, is a town built on aluminium. Since the 1950s, the wonder-metal has kept this place on the map.

Once upon a time, the metal itself was produced here. A massive smelting plant dominated the skyline, and inside, huge furnaces, transforming American aluminium ore (alumina) into the metal we recognise.

The newly smelted metal was then sent by river, rail and road to other factories dotted across the country to be cast – turned to sheet and coil for the nation’s cars, planes, trucks and so much more.

Kaiser Aluminium closed its smelters in 2009. The plant now sits idle. Fencing surrounds it; grass partially obscures the entrance, where hundreds of workers would once have passed.

Two hundred metres down the road, there is a different story.

Constellium Ravenswood is one of the world’s largest factories of its kind.

With over a thousand employees it produces plate, sheet and coiled aluminium for numerous industries: aerospace, defence, transportation, marine and more.

Its products are custom designed for clients including Boeing, Lockheed Martin and NASA.

But here’s the problem. The Constellium plant uses aluminium now sourced from abroad. America’s primary aluminium production has dropped off a cliff over the past few decades.

The Kaiser plant next door which could have provided the metal for its neighbour to process and press was instead the victim of cheap foreign competition and high energy costs.

Smelting aluminium requires huge amounts of constant energy. If the smelters are ever turned off, the metal inside will solidify, destroying the facility.

In 2023, the annual rate of US primary aluminium production fell 21.4% on the previous year, according to the Aluminium Association.

However, the Canadian Aluminium Association projected that their annual production would be up by 6.12% in 2024 compared to the previous year.

The story is clear – this industry, like so many in America, is in steep decline. Competition and high production and energy costs are having a huge impact.

The danger ahead is that secondary aluminium production in America could go the way of primary production: firms down the supply chain could choose to buy their sheeting and coils from abroad too.

The answer, says President Trump, is tariffs. And the chief executive of Constellium agrees with him.

“We believe in free AND fair trade,” Jean-Marc Germain told Sky News from the company’s corporate headquarters in Baltimore. “And the point is that trade has been free but not fair.”

“There has been massive growth in the capacity installed in China. Kudos to the Chinese people, that is admirable, but a lot of that has been allowed by illegal subsidies. What it means is that overall, trade of aluminium products is broken as an international system. And I think those tariffs are a way to address some of that very uneven playing field that we are seeing today.”

Mr Germain says the tariff plan will reset the market. He accepts that blanket tariffs are a blunt and risky tool, but cuts out circumvention by one country to another.

“Obviously, this process creates some collateral damage. It is clear that not all countries and not all products are unfairly traded. But because of the sheer size of China and the history of Chinese production making its way through certain countries into the US… a blunt approach is required,” he says.

The White House 25% tariff plan for steel and aluminium is global and causing huge angst.

Experts say a long-term domestic rebalance, revitalising the American industrial sector, will take many years and is not guaranteed.

But upending the status quo and disrupting established supply chains risks significant short and medium-term disruption, both at source and destination.

The foreign aluminium arriving at Ravenswood’s Constellium plant to be pressed will now cost 25% more – a hike in price which Mr Germain says his firm can ride out to achieve the longer-term rebalance.

“I’m not going to say that an increase in cost is a good thing for customers. But I think it’s important to look at things and put them in proportion…” he says.

Proportion is not a luxury all can afford. 250 miles to the east, in Washington DC and just four miles from the frenetic policy decisions at the White House, the Right Proper Brewing Company is a dream realised for Thor Cheston.

Thor shows me around his small warehouse-based business that is clearly thriving.

He takes me to the grain silos around the back. The grain is from Canada.

Thor relies on an international supply chain – the cans are aluminium and from Canada too. Some of the malt is from Germany and from Britain.

It is a complex global web of manufacturing to make American beer. Margins are tight.

“We don’t have the luxury of just raising our prices. We’re in a competitive landscape,” Thor says. Competition with big breweries, who can more easily absorb increased costs.

The cans will probably go up in price on his next order. He doesn’t yet know how much of the 25% will be passed on to him by his supplier.

“We’ve dealt with major problems like this before. We’ve had to pivot a lot. We have survived the global pandemic. We’ve done it before, but we don’t want to. We just need a break.”

What about the government’s argument to ‘buy American’?

“It’s not as simple as that,” Thor says.

Back in West Virginia the mighty Ohio River snakes past the Ravenswood factories.

It still carries what’s left of America’s heavy industry. A vast multi-vessel barge full of coal passed as I chatted to locals in the nearby town of Parkersburg, a pleasant place but not the thriving industrial community it once was.

“We used to have a really nice aluminium plant right down the river here and it shut down,” one resident reflects in a passing conversation.

Here you can see why many rolled the dice for Trump.

“In West Virginia, we’re big on coal,” Sam Cumpstone tells me.

He works in the railways to transport coal. The industry went through economic devastation in the late noughties, the closure of hundreds of mines causing huge unemployment.

Sam is clear on who he blames: “Obama shut down mines and made ghost towns in West Virginia. It ruined a lot of people’s lives.”

There is recognition here that Trump’s sweeping economic plans could cause prices to rise, at least in the short term. But for Trump voter Kathy Marcum, the pain would be worth it.

“He’s putting tariffs on other countries that bring their things in, and that way it equals out. It has to be even-stevens as far as I’m concerned… He is a smart businessman. He knows what the hell he’s talking about.

“It might be rough for a little while, but in the long run I think it will be best for the country.”

Communities have been let down over generations – either by politicians or by inevitable globalisation. There is still deep scepticism here.

“No politician worth millions or billions of dollars cares about me or you. Nobody,” Sam tells me at the end of our conversation.

The Trump tariff blueprint is full of jeopardy. If it fails, it will be places like West Virginia, that will be hit hardest again.

US

Elon Musk to step back from government role ‘in coming months’

Published

7 hours ago

April 2, 2025

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Elon Musk to step back from government role 'in coming months'

Donald Trump has told members of his cabinet that Elon Musk will leave his government role in the coming months.

A senior White House official told NBC News, Sky’s US partner network, that the US president had discussed the Tesla and X boss transitioning back to the private sector at a cabinet meeting last month.

Mr Trump is said to have called Mr Musk a “patriot” at the end of the meeting on 24 March, and told the room that “he has never asked me for a thing”.

On Monday in the Oval Office, the president said Mr Musk would at some point be going back to his businesses.

The official said Mr Musk would leave at the end of his 130 days as a special government employee.

That would be 30 May, but it is unclear if the billionaire businessman will indeed leave on that date.

Previously, the White House said that as a temporary organisation, the Department of Government Efficiency (DOGE) would be terminated on 4 July next year – the 250th anniversary of the US.

It comes days after Mr Musk said some members of his DOGE team were getting death threats on a daily basis.

Mr Musk had drawn criticism over his efforts to downsize the US federal government.

In just weeks, entire agencies were dismantled, and tens of thousands of workers from the 2.3 million federal workforce have been fired or have agreed to leave their jobs.

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Film star Val Kilmer dies aged 65

Published

18 hours ago

April 2, 2025

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Val Kilmer, the actor who starred in Top Gun and played Batman and Jim Morrison, has died aged 65.

His daughter Mercedes told the Associated Press he died of pneumonia on Tuesday night in Los Angeles surrounded by family and friends.

Kilmer was diagnosed with throat cancer in 2014 but later recovered, she said.

The actor, who played Tom ‘Iceman’ Kazansky in Top Gun alongside Tom Cruise in 1986, previously admitted he didn’t want the role, which made him famous.

But he said he begged to be part of the sequel, Top Gun: Maverick in 2022, even going as far as contacting the producers and creating “heartrending scenes with Iceman”. It would be his final acting role.

Kilmer had a colourful romantic past, having dated Hollywood stars including Cindy Crawford, Angelina Jolie, Carly Simon and Cher.

He starred in Willow in 1988 and married his British co-star Joanne Whalley. The couple had two children before they divorced in 1996.

Kilmer portrayed Batman in the 1995 film Batman Forever and received critical acclaim for his portrayal of rock singer Jim Morrison in the 1991 movie The Doors.

He also starred in True Romance and Kiss Kiss Bang Bang, as well as playing criminal Chris Shiherlis in Michael Mann’s 1995 movie Heat and Doc Holiday in the 1993 film Tombstone.

Kilmer was one of the best-paid actors in the 1990s and in 1992 film critic Roger Ebert wrote, “if there is an award for the most unsung leading man of his generation, Kilmer should get it”.

In his 2020 memoir Your Huckleberry, Kilmer discussed his throat cancer diagnosis and recovery.

Actor Josh Brolin wrote on Instagram: “See ya, pal. I’m going to miss you. You were a smart, challenging, brave, uber-creative firecracker. There’s not a lot left of those.

“I hope to see you up there in the heavens when I eventually get there. Until then, amazing memories, lovely thoughts.”

In an Instagram post actor Josh Gad called Kilmer “an icon”.

He said: “RIP Val Kilmer. Thank you for defining so many of the movies of my childhood. You truly were an icon.”

Kilmer made his Broadway debut in the 1983 production of Slab Boys with Sean Penn and Kevin Bacon.

He also appeared in Shakespeare plays in New York – playing the title role in Hamlet and appearing in Henry IV: Part One and As You Like It.

In 2005, he starred on London’s West End in Andrew Rattenbury’s adaptation of The Postman Always Rings Twice at the Playhouse Theatre.

Kilmer also enjoyed painting, with his website describing him as a “talented and prolific artist in a variety of mediums”.

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‘Liberation day is here’: But what will it mean for global trade?

Published

21 hours ago

April 2, 2025

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'Liberation day is here': But what will it mean for global trade?

“Liberation day” was due to be on 1 April. But Donald Trump decided to shift it by a day because he didn’t want anyone to think it was an April fool.

It is no joke for him and it is no joke for governments globally as they brace for his tariff announcements.

It is stunning how little we know about the plans to be announced in the Rose Garden of the White House later today.

It was telling that we didn’t see the President at all on Tuesday. He and all his advisers were huddled in the West Wing, away from the cameras, finalising the tariff plans.

Follow the events of Liberation Day live as they unfold

Three key figures are central to it all.

Treasury Secretary Scott Bessent is the so-called ‘measured voice’. A former hedge fund manager, he has argued for targeted not blanket tariffs.

Peter Navarro is Trump’s senior counsellor for trade and manufacturing. A long-time aide and confidante of the president, he is a true loyalist and a firm believer in the merits of tariffs.

His economic views are well beyond mainstream economic thought – precisely why he appeals to Trump.

‘Stop that crap’: Trump adviser Peter Navarro reacts to Sky News correspondent’s question over tariffs

The third key character is Howard Lutnick, the commerce secretary and the biggest proponent of the full-throttle liberation day tariff juggernaut.

The businessman, philanthropist, Trump fundraiser and billionaire (net worth ranging between $1bn and $2bn) has been among the closest to Trump over the past 73 days of this presidency – frequently in and out of the West Wing.

If anything goes wrong, observers here in Washington suspect Trump will make Lutnick the fall guy.

What are Donald Trump’s tariffs, what is ‘liberation day’ and how does it all affect the UK?

And what if it does all go wrong? What if Trump is actually the April fool?

“It’s going to work…” his press secretary said when asked if it could all be a disaster, driving up the cost of living for Americans and creating global economic chaos.

“The president has a brilliant team who have been studying these issues for decades and we are focussed on restoring the global age of America…” Karoline Leavitt said.

Dancing to the president’s tune

My sense is that we should see “liberation day” not as the moment it’s all over in terms of negotiations for countries globally as they try to carve out deals with the White House. Rather it should be seen as the start.

Trump, as always, wants to be seen as the one calling the shots, taking control, seizing the limelight. He wants the world to dance to his tune. Today is his moment.

But beyond today, alongside the inevitable tit-for-tat retaliation, expect to see efforts by nations to seek carve-outs and to throw bones to Trump; to identify areas where trade policies can be tweaked to placate the president.

Even small offerings which change little in a material sense could give Trump the chance to spin and present himself as the winning deal maker he craves to be.

One significant challenge for foreign governments and their diplomats in Washington has been engaging the president himself with proposals he might like.

Negotiations take place with a White House team who are themselves unsure where the president will ultimately land. It’s resulted in unsatisfactory speculative negotiations.

Too much faith placed in the ‘special relationship’?

The UK believes it’s in a better position than most other countries globally. It sits outside the EU giving it autonomy in its trade policy, its deficit with the US is small, and Trump loves Britain.

It’s true too that the UK government has managed to accelerate trade conversations with the White House on a tariff-free trade partnership. Trump’s threats have forced conversations that would normally sit in the long grass for months.

Yet, for now, the conversations have yielded nothing firm. That’s a worry for sure. Did Keir Starmer have too much faith in the ‘special relationship’?

Downing Street will have identified areas where they can tweak trade policy to placate Trump. Cars maybe? Currently US cars into the UK carry a 10% tariff. Digital services perhaps?

US food? Unlikely – there are non-tariff barriers on US food because the consensus seems to be that chlorinated chicken and the like isn’t something UK consumers want.

Easier access to UK financial services maybe? More visas for Americans?

For now though, everyone is waiting to see what Trump does before they either retaliate or relent and lower their own market barriers.