US Tariffs On Canadian Aluminium: Major Impacts On American Workers And Consumers

(MENAFN- PR Newswire)

MONTREAL, Feb. 2, 2025 /PRNewswire/ - Canada's aluminium industry finds unfortunate and highly disruptive the 25% tariffs announced by the US administration. "We are disappointed, but we were expecting this and are ready for it," said Jean Simard, President and CEO of the Aluminium Association of Canada. "This situation will unfortunately impact workers and consumers in America with the immediate increase on the price of aluminium."

Our 9,500 Canadian aluminium workers produce the metal that is processed, transformed and fabricated into parts, components, and everyday products by more than 500,000 well-paid American manufacturing workers, generating more than $200 billion in economic output in the US economy alone.

Our economies are integrated because it makes sense, because it benefits workers, consumers, and communities on both sides of the border.

As we have done in the past, industry and governments will work hand-in-hand to maintain our domestic aluminium industrial ecosystem, a 100-year-old plus legacy, contributing to North America's defense and economic security.

We will continue working alongside our governments, our Ambassador and our Canadian industrial business and union colleagues, maintaining a united front.

We will also actively reach out to our stakeholders in the US – customers, entrepreneurs, businesses, workers, elected officials – whose daily livelihood thrives on the use of our metal.

Going forward the focus for our industry and our countries must be set on addressing the devastating impacts of unfair Chinese trading practices stemming from massive state subsidies on the entire aluminium ecosystem. These non-market policies and practices of the last two decades have hurt our workers and businesses, shuttered smelters, and made it harder for our responsibly produced metal to compete. Canada will not be a transshipment risk or a vector for trade practices that could harm our collective economic security.

We have been working very closely with US government and industry to align our trade tool kit to protect fortress North America, including the most recent implementation of 25% surtax on imports of China's aluminium products. Other measures taken over the last five years include:

• In 2024, Government of Canada provided $10.5 million over three years for the Canada Border Services Agency (CBSA) to create a dedicated Market Watch Unit.
• Creating a new regime to address circumvention and providing more flexibility to apply higher dumping duty rates when there are market distortions.
• Creating and implementing in 2019 an Aluminium Imports Monitoring System.
• Developing and implementing the world's first and only operating aluminium digital traceability system, ensuring real-time tracking of metal shipments coming out of the gate.

This is why Canadian aluminium must remain exempt of any tariffs, because of its strategic role within North America's integrated industrial value chain. While the US produces, at best, one million metric tons a year of primary metal, it consumes six times that amount. Imposing tariffs will only raise costs for US consumers and businesses in the middle of inflation reduction efforts.

About the Aluminium Association of Canada

Founded in 1990, the Aluminium Association of Canada (AAC) represents the three Canadian world-class aluminium producers: Alcoa, Alouette, and Rio Tinto. Operating nine smelters in Canada, eight of which in Quebec, employing over 9,500 workers. The AAC and its members are active in the development of best practices in health and safety and responsible low CO2 production. For more information, visit aluminium or X @AAC_aluminium.

SOURCE Aluminium Association of Canada

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