Canada could financially back aluminum producers if 50 pct US tariffs persist, trade group says
Aluminium Association of Canada CEO Jean Simard told Reuters in an interview that the early talks could help the sector in the event that Ottawa is unable to reach a planned deal with its key trading partner by July 21.
"It's part of a larger discussion where everything is on the table," Simard said, adding that no decision has been reached. Canada recently canceled a digital service tax on US technology companies in order to preserve trade talks with US President Donald Trump, but another irritant remains in the ongoing negotiations. While the major aluminum producers operating in Canada do not have liquidity problems, Simard said, a 50 per cent US tariff on aluminum imports would inevitably have an impact on finances if it continues longer term.
He added that with the 50 per cent tariff in effect since June 4, it's normal that there are discussions about the impact on businesses' cash flow if the situation continues.
Around half of all aluminum used in the US is imported, with the vast majority coming from Canada.
Simard's comments follow media reports late Friday in which federal industry minister Mélanie Joly said the government is having conversations with Rio Tinto about providing financial assistance due to the crushing US tariffs.
Rio Tinto declined comment on Saturday. A spokesperson for Joly's office said in a statement that Ottawa is in "active conversations" on how it can best support Canada's aluminum industry in the context of unjustified American tariffs, with the goal to support increased investment in the sector. US President Donald Trump doubled tariffs on steel and aluminum imports to 50 per cent last month, stepping up pressure on global steel producers and deepening his trade war, to support domestic production of the vital materials for construction.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
16 minutes ago
- The Star
Nvidia working on new AI chip for China that outperforms the H20, sources say
FILE PHOTO: A smartphone with a displayed Nvidia logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/File Photo BEIJING/SINGAPORE: Nvidia is developing a new AI chip for China based on its latest Blackwell architecture that will be more powerful than the H20 model it is currently allowed to sell there, two people briefed on the matter said. U.S. President Donald Trump last week opened the door to the possibility of more advanced Nvidia chips being sold in China. But the sources noted U.S. regulatory approval is far from guaranteed amid deep-seated fears in Washington about giving China too much access to U.S. artificial intelligence technology. The new chip, tentatively known as the B30A, will use a single-die design that is likely to deliver half the raw computing power of the more sophisticated dual-die configuration in Nvidia's flagship B300 accelerator card, the sources said. A single-die design is when all the main parts of an integrated circuit are made on one continuous piece of silicon rather than split across multiple dies. The new chip would have high-bandwidth memory and Nvidia's NVLink technology for fast data transmission between processors, features that are also in the H20 - a chip based on the company's older Hopper architecture. The chip's specifications are not completely finalised but Nvidia hopes to deliver samples to Chinese clients for testing as early as next month, said the sources who were not authorised to speak to media and declined to be identified. Nvidia said in a statement: "We evaluate a variety of products for our roadmap, so that we can be prepared to compete to the extent that governments allow." "Everything we offer is with the full approval of the applicable authorities and designed solely for beneficial commercial use," it said. The U.S. Department of Commerce did not respond to a Reuters request for comment. FLASHPOINT The extent to which China, which generated 13% of Nvidia's revenue in the past financial year, can have access to cutting-edge AI chips is one of the biggest flashpoints in U.S.-Sino trade tensions. Nvidia only received permission in July to recommence sales of the H20. It was developed specifically for China after export restrictions were put in place in 2023, but company was abruptly ordered to stop sales in April. Trump said last week he might allow Nvidia to sell a scaled-down version of its next-generation chip in China after announcing an unprecedented deal that will see Nvidia and rival AMD give the U.S. government 15% of revenue from sales of some advanced chips in China. A new Nvidia chip for China might have "30% to 50% off", he suggested in an apparent reference to the chip's computing power, adding that the H20 was "obsolete". U.S. legislators, both Democratic and Republican, have worried that access to even scaled-down versions of flagship AI chips will impede U.S. efforts to maintain its lead in artificial intelligence. But Nvidia and others argue that it is important to retain Chinese interest in its chips - which work with Nvidia's software tools - so that developers do not completely switch over to offerings from rivals like Huawei. Huawei has made great strides in chip development, with its latest models said to be on par with Nvidia in some aspects like computing power, though analysts say it lags in key areas such as software ecosystem support and memory bandwidth capabilities. Complicating Nvidia's efforts to retain market share in China, Chinese state media have also in recent weeks alleged that the U.S firm's chips could pose security risks, and authorities have cautioned Chinese tech firms about purchasing the H20. Nvidia says its chips carry no backdoor risks. Nvidia is also preparing to start delivering a separate new China-specific chip based on its Blackwell architecture and designed primarily for AI inference tasks, according to two other people familiar with those plans. Reuters reported in May that this chip, currently dubbed the RTX6000D, will sell for less than the H20, reflecting weaker specifications and simpler manufacturing requirements. The chip is designed to fall under thresholds set by the U.S. government. It uses conventional GDDR memory and features memory bandwidth of 1,398 gigabytes per second, just below the 1.4 terabyte threshold established by restrictions introduced in April that led to the initial H20 ban. Nvidia is set to deliver small batches of RTX6000D to Chinese clients in September, said one of the people. - Reuters
Malaysiakini
33 minutes ago
- Malaysiakini
Why invite 'bloodied hands' Trump to Asean, Hassan asks
PARLIAMENT | A government MP today questioned Malaysia's decision to invite US President Donald Trump to the 47th Asean Summit, scheduled to be held in Kuala Lumpur this October. Speaking at the Dewan Rakyat, Hassan Karim (Harapan-Pasir Gudang) raised his concern over the US president's role in the ongoing genocide by Israel against Palestinians in Gaza.
New Straits Times
an hour ago
- New Straits Times
Indonesia plans quick-to-build oil refineries for US crude, doubts persist
JAKARTA/SINGAPORE: Indonesia plans to build a network of small modular refineries to process US and domestic oil, aiming to reduce gasoline imports, but analysts warn the switch in strategy from large-scale refining facilities could prove uneconomical. The prefabricated refinery units, which can be constructed faster and more cheaply than traditional plants, will help Asia's largest importer of gasoline meet domestic demand and its commitment to increase US imports. Indonesia's focus on small refineries runs counter to the global trend of ever-larger crude processing facilities that maximise economies of scale, analysts say. Reuters reported last month that Indonesian sovereign wealth fund Danantara planned to sign an US$8 billion contract with US engineering firm KBR Inc for 17 modular refineries, citing sources and an official economic ministry presentation. Danantara has not commented directly on the deal and KBR did not respond to Reuters requests for comment. Indonesian officials confirmed the refinery plan, which was agreed as part of Indonesia's deal with Washington that includes a pledge to buy US$15 billion worth of US energy products for reduced tariffs on Indonesian goods. "We will import crude oil into Indonesia and that will require refineries that match the characteristics of US crude, so we invest accordingly," Danantara CEO Rosan Roeslani told reporters at a conference last month, adding that details were still being discussed. Deputy Energy Minister Yuliot Tanjung said there were plans to locate the refineries close to oil production sites. Initial studies for modular infrastructure and oil storage facilities have been conducted in Natuna, Surabaya, North Halmahera and Fakfak, among others. The planned projects were among those proposed to Danantara for funding, Yuliot said. Indonesia's total oil and gas imports stood at US$36.28 billion in 2024, official data showed. FEASIBILITY CONCERNS Analysts have expressed caution over the feasibility of the strategy, citing Indonesia's historical challenges in expanding its refining capacity. Indonesia's Pertamina has plans to invest US$48 billion to upgrade six refineries and construct a large refining and petrochemical complex to double the state-owned firm's oil products output to 1.5 million barrels per day (bpd). Pertamina initially partnered with major global companies for the projects, but most of the partnerships were cancelled for various reasons, including disagreement over the value of projects, forcing Pertamina to conduct most of the expansion alone. Indonesia has not built a major refinery in 30 years. Pertamina's existing six refineries have a combined capacity of 1.06 million bpd, meeting around 60 per cent of domestic fuel demand. In 2022, Pertamina completed a first-phase upgrade at the Balongan refinery to increase capacity by 25,000 bpd, but the US$7.4 billion upgrade of the Balikpapan refinery under the Refinery Development Master Plan (RDMP) is yet to be completed. A partnership with Rosneft to build a 300,000-bpd refinery and petrochemical complex in Tuban has faced delays due to sanctions on Russia over its war with Ukraine. "Building the 17 refineries seems quite ambitious considering that RDMP plans are also under way," said Pankaj Srivastava, senior vice president at Rystad Energy. Simple refineries can be completed in less than half the time of larger complexes and cost less, providing a "quick fix" and easing Indonesia's reliance on refined oil imports, but will not help the country achieve its goal to expand its petrochemical capacity, he said. Small refineries, typically with capacities of 50,000 bpd to 150,000 bpd, are generally simpler units without upgrading facilities, limiting economies of scale, said Adi Imsirovic, director at Surrey Clean Energy. Additionally, these projects - with a smaller feedstock requirement and terminal restrictions - will likely require the use of smaller vessels to import crude, raising costs significantly, said Sparta Commodities' senior analyst June Goh. She also warned that the arbitrage may not always be economical for US West Texas Intermediate crude.
