1. Report Industry Investment Rating No information provided. 2. Core View of the Report - The expansion of the US steel and aluminum tariff scope on August 15 did not change the tariff rate. The impact on aluminum prices is relatively small compared to the adjustment on May 30. The tariff is expected to cause a price correction rather than a reversal, and the correction range is not expected to be deep. In the medium - term, aluminum prices are still optimistic, and the correction is regarded as a restocking opportunity [3][16]. - The impact of the tariff expansion on demand needs to be verified by subsequent retail data. The previous tariff increase made PPI rise but had little impact on CPI, indicating that most of the tariff was absorbed by manufacturers and had less impact on demand [14]. - The US tariff policy adjustment affects the entire non - ferrous metal sector, which will be reflected in demand and then affect prices. The tariff range may be adjusted according to relevant categories, and the policy uncertainty in the second half of 2025 is decreasing [18]. 3. Summary by Relevant Contents US Steel and Aluminum Tariff Policy Timeline - On February 10, 2025, Trump signed a document to impose a 25% tariff on all imported steel and aluminum in the US and cancel the tax - free quotas and exemptions for some trading partners [2]. - On March 12, 2025, the 25% tariff on all imported steel and aluminum in the US officially took effect [2]. - On May 30, 2025, Trump announced to raise the steel and aluminum import tariff from 25% to 50%, which took effect on June 4 [2][3]. - On August 15, 2025, the Trump administration announced to expand the scope of the 50% tariff on steel and aluminum imports, adding 407 product codes, and the new list took effect on August 18 [1][3]. Newly Added Tariff - Covered Product Areas - Automobile manufacturing: Galvanized steel sheets, aluminum alloy wheels, engine brackets and other key components [4]. - Construction engineering: Steel structure beams, aluminum alloy window and door frames, prestressed concrete steel strands [4]. - Consumer goods: Tin - plated sheets for cans, household appliance shells, kitchen cookware [5]. - Industrial equipment: Transformers, compressor valve plates, hydraulic system pipes, structural parts of mining machinery and industrial processing machinery [5]. China's Aluminum Exports to the US - Direct exports of aluminum materials: Since 2018, China's exports of unforged aluminum and aluminum materials to the US have decreased significantly. In 2024, the export volume was 25.4 tons, a 62% decrease from 2017. The proportion of exports to the US in total exports dropped to 3.8% in 2024, a 10.2 - percentage - point decrease from 2017 [5]. - Exports of aluminum products: The scale of China's aluminum product exports to the US has been generally stable, ranging from 350,000 to 600,000 tons, accounting for about 16% of total exports. The indirect export scale of aluminum is estimated to exceed 3 million tons, and exports to the US account for about 15% [7]. - Re - exports of aluminum: After the US trade war in 2017, the global aluminum trade flow was reshaped. China's aluminum exports to the US decreased, while exports to other countries and regions increased. Mexico, Hong Kong and Southeast Asian countries are common re - export destinations [9]. China's Aluminum Consumption and Export Proportion - In 2024, China's full - scale domestic aluminum consumption was 50.23 million tons, accounting for 88% of total consumption, with a compound annual growth rate of 5.3% from 2015 - 2024. Aluminum and aluminum material exports were 6.63 million tons, accounting for 12% of total consumption, with a compound annual growth rate of 4.4% from 2015 - 2024. Exports to the US accounted for about 4.6% - 6.4% of the country's total aluminum product consumption [13]. Impact of Tariff Adjustment - There is some room for enterprises to operate in tariff declaration, but the impact on demand is real. The extent of the impact depends on how the tax is distributed between manufacturers and consumers [14]. - Previous tariff increases made PPI rise but had little impact on CPI, indicating that most of the tariff was absorbed by manufacturers. The specific impact of this tariff expansion needs to be verified by subsequent retail data [14]. - From the perspective of the futures market, this tariff expansion has less impact on aluminum prices. In the medium - term, there are upward drivers for aluminum in September, such as interest rate cuts and the recovery of peak - season demand [16]. Future Focus on Tariff Policy - Future tariff - related content worthy of attention includes global tariff agreements and which categories are within the agreement scope. The US policy uncertainty index has decreased since August 2025 [18].

Group 1 - The U.S. Department of Commerce announced the inclusion of 407 product categories in the steel and aluminum tariff list, with a tax rate of 50% [1] - The expanded tariff list includes a wide range of products such as wind turbines, mobile cranes, railway vehicles, furniture, and compressor and pump equipment [1] - The tariff policy aims to protect domestic manufacturing and reduce reliance on imports, as emphasized by the Trump administration [1] Group 2 - U.S. Aluminum Company reported an increase in production costs due to government tariff policies, amounting to $20 million in Q1 and $115 million in Q2 [2] - Approximately 70% of the aluminum produced by the company in Canada is sold to the U.S., where customers are now paying higher prices than in other global regions [2] - The current steel and aluminum tariffs are the highest since the 1930s, leading to increased prices for these materials and potentially higher costs for manufacturers and consumers [2]

Core Viewpoint - The U.S. Department of Commerce has added 407 product categories to the steel and aluminum tariff list, with a tax rate of 50% aimed at protecting domestic manufacturing and reducing import dependency [2][4]. Group 1: Tariff Implementation - The newly added tariff list includes a wide range of products such as wind turbines and their components, mobile cranes, railway vehicles, furniture, compressors, and pump equipment [3][4]. - The expanded tariff list will officially take effect on August 18 [4]. Group 2: Impact on Companies - U.S. Aluminum Company reported that the tariff policy has significantly increased its production costs, with an additional $20 million in costs in Q1 and $115 million in Q2 due to tariffs on Canadian imports [4]. - Approximately 70% of the aluminum produced by U.S. Aluminum Company in Canada is sold to the U.S., where customers are now paying higher prices compared to other global markets [4]. Group 3: Historical Context and Economic Implications - Current steel and aluminum tariffs are the highest since the 1930s, which is expected to raise prices for these materials, leading to increased production costs for manufacturers and potential job losses in the manufacturing sector [4].

Core Points - The recent negotiations between the U.S. and Japan regarding tariff issues ended without an agreement, leading to a postponement of Japanese Prime Minister Shigeru Ishiba's visit to the U.S. [1][5] Group 1: Negotiation Context - The Japanese delegation, led by Economic Revitalization Minister Ryōsuke Akizuki, engaged in the fifth round of tariff negotiations in Washington, aiming for tariff exemptions by increasing investments in the U.S. and boosting imports from the U.S. [2] - The U.S. has implemented a "reciprocal tariff" policy since President Trump took office, significantly impacting Japan, particularly with the recent steel and aluminum tariffs [2][3]. Group 2: U.S. Negotiation Dynamics - During the negotiations, key U.S. officials, including Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, and Trade Representative Robert Lighthizer, reportedly had internal disputes, complicating the discussions with Japan [3][4]. - The differing stances among U.S. officials, with Mnuchin viewed as a moderate and Ross as a hardliner, created confusion for the Japanese side regarding the U.S. government's true intentions [3][4]. Group 3: Outcomes and Future Plans - The Japanese side indicated that no common ground was found during the negotiations, and Ishiba emphasized that negotiations would not proceed at the expense of national interests [6][7]. - Due to significant differences, Ishiba's planned visit to the U.S. was postponed, although Akizuki is expected to visit the U.S. again soon, with further discussions planned during the G7 summit in Canada [7][8].

Core Points - The EU steel industry has faced significant challenges since the implementation of a 25% tariff on all imported steel and aluminum by the US on March 12 [1] - The European Steel Industry Association reported a reduction of 1 million tons in steel exports to the US, resulting in a loss of approximately 2 billion euros [1] - US steel users are expected to experience increased procurement costs by 25% if they cannot source the required products from the domestic market, as the US steel industry is unable to produce a wide range of product grades [1]