Trump's tariff blueprint could transform America's industrial base or harm the poorest states

30 March 2025, 15:59 | Updated: 31 March 2025, 05:39

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 tells 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," he adds.

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.