Aluminum Giant Rio Tinto Not Planning to Invest in U.S. For Tariff Discount -- Interview

By Rhiannon Hoyle

Rio Tinto has no plans to invest in U.S. aluminum smelting capacity despite the Trump administration's recent offer to halve tariffs on some metal imports for companies that do so, according to Chief Executive Simon Trott.

Last week, President Trump announced plans to cut tariffs on imported aluminum to 25% from 50% for companies that build, expand or refurbish aluminum-production plants in the U.S. The volume of imports entitled to the discount would mirror the amount of aluminum that any U.S. project would be expected to produce, he said.

Trump said the change is aimed at encouraging investment in U.S. aluminum capacity, which is critical to the economy and defense sector, and remains insufficient despite the tariffs.

Rio Tinto is a major shipper of aluminum into the U.S. from its plants in Canada, and reported costs totaling more than $1 billion related to the tariffs over the past year. It doesn't currently have any aluminum smelters within the U.S.

In an interview, Trott said Rio Tinto is focused on its copper and lithium businesses in the U.S. rather than adding any aluminum capacity there.

"We do have a significant footprint" in the U.S., including the Resolution Copper project in Arizona as well as copper operations in Utah and a lithium plant in North Carolina, he said.

The company is "really focused on those opportunities, not pursuing a U.S. smelter at this stage," said Trott.

Rio Tinto takes a long-term view when deciding on projects that typically take many years to develop, he said. "So we've got to look through nearer-term volatility."

Rio Tinto said it shipped 585,000 metric tons of aluminum to the U.S. in the first half of 2026, down from 723,000 tons in the same period a year ago.

Costs from U.S. aluminum tariffs totaled $773 million in the half, up from $709 million the preceding half and $321 million a year ago, before the duty was doubled to 50%.

Trott said some of the aluminum that would have previously been shipped to the U.S. is finding homes in other markets.

"Tariffs tend to redirect flows rather than really change the underlying demand story," he said. With "the imposition of tariffs or other trade policies, we've got to respond and redirect our flows to reach the customers that we need and so that's what's happened."

The mining industry is meanwhile awaiting the outcome of a review into potential U.S. tariffs on refined copper imports, and Trott said he is "certainly very watchful" of the decision.

Rio Tinto owns one of only two copper smelters currently operating within the U.S. That "obviously gives us significant options within the portfolio," Trott said.

Anticipation of new refined-copper tariffs has led to a jump in imports of the metal into the U.S., tightening global supplies. "We continue to monitor that," said Trott.

He spoke after Rio Tinto reported a rise in its first-half profit and dividend on higher commodity prices, increased production and productivity improvements.

The world's second-biggest miner by market value said it earned a net profit of $6.66 billion in the six months through June, up from $4.53 billion a year earlier. It was the miner's highest first-half net profit since 2022.

Shares in the miner's Sydney-listed stock were roughly 4.5% higher by early afternoon.

Copper, aluminum and lithium made up a greater share of earnings, helping lessen the company's dependence on steelmaking ingredient iron ore for its profits.

Like many top miners globally, Rio Tinto has been racing to expand its footprint in copper, a metal widely expected to be in demand for electric vehicles and data-center infrastructure.

Earlier this year, the company held talks with rival Glencore about a potential tie-up that could have turned it into the world's biggest mining company and copper producer. Negotiations failed to advance.

A six-month restriction on resuming talks under U.K. takeover rules ends in early August.

Asked whether Rio Tinto will restart negotiations with Glencore, Trott said the miner is "really focused on the work we need to do in our own business."

After the Glencore deal talks ended in February, Trott touted the miner's own plans for growth, particularly in copper. He had earlier also laid out plans to cut costs and sell assets to simplify Rio Tinto's business.

"So that's where the focus is," he said.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

July 29, 2026 00:30 ET (04:30 GMT)