US tariffs on Canadian aluminium: the North American supply chain security is at risk Français

Cision Canada

2 days ago

, June 3, 2025 /CNW/ - The Aluminium Association of Canada strongly opposes the United States' announcement of a 50% tariff on Canadian aluminium, calling it a misguided measure that threatens the security of North America's integrated supply chain.
"A 50% tariff on Canadian aluminium will suppress demand across the continent — whether the metal is produced in Canada or the U.S.," said Jean Simard, president and CEO of the Aluminium Association of Canada. "It will impact workers on both sides of the border and disrupt key sectors including defense, construction and automotive.
At a rate of $1,349.50 per metric ton, the tariff effectively makes Canadian exports to the U.S. economically unviable. While Canada remains committed to serving its U.S. customers, the industry may be forced to diversify trade toward the European Union.
"This measure risks increasing U.S. reliance on aluminium from distant sources — including China, Russia, India and the Middle East — for a material critical to national security," Simard added. "It jeopardizes 125 years of cross-border industrial cooperation and will trigger a fundamental shift in global trade flows."
The Canadian industry supports the U.S. goal of increasing domestic aluminium production capacity from 50% to 80%. However, punitive tariffs do not create the certainty needed for long-term, capital-intensive investments. Even with higher domestic output, the U.S. will continue to rely on substantial aluminium imports.
Canada's 9,500 aluminium workers produce metal that is transformed by more than 700,000 American manufacturing workers into essential products. This binational value chain contributes over $228 billion annually to the U.S. economy.
A Strategic Energy Advantage to the U.S.
Aluminium production is highly energy-intensive, with energy comprising about 40% of production costs. Canada exports 2.7 million metric tons of aluminium to the U.S. each year — the energy equivalent of 40 million megawatt hours, 4 Hoover dams, or enough to power the state of Nevada or 460 data centers.
Thanks to its access to hydropower, Canada produces low-carbon, secure and competitively priced aluminium — a vital advantage in today's energy-constrained landscape. This clean energy base reinforces Canada's role as the most reliable source of aluminium from a stable democracy.
Protecting a Shared Industrial Base
Canada and the U.S. have worked together for more than a century to build a resilient, integrated aluminium industry. That cooperation remains essential to supporting jobs, national defense and economic security.
The industry will continue working with American stakeholders — manufacturers, workers, business owners and policymakers — whose livelihoods depend on affordable, responsibly sourced aluminium.
Focusing on Real Trade Challenges
The priority for both countries should be addressing unfair trade practices by China, whose state-subsidized overcapacity has distorted global markets, forced smelters to shut down and undermined producers in North America.
Canada has taken strong, coordinated action to defend the North American market:
In 2024, the Canadian government committed $10.5 million over three years to the Canada Border Services Agency to create a Market Watch Unit.
New rules target circumvention and allow higher anti-dumping duties in distorted markets.
A digital aluminium imports monitoring system was implemented in 2019.
Canada leads the world with a real-time aluminium traceability system, tracking every shipment from its source.
Canadian aluminium is not — and will not be — a backdoor for unfair trade. Its continued exemption from U.S. tariffs is essential to safeguarding the shared North American aluminium value chain. While the U.S. produces roughly 1 million metric tons of primary aluminium annually, it consumes five times that amount. Tariffs will only raise costs for U.S. manufacturers and consumers at a time of ongoing inflation concerns.
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 CO 2 production. For more information, visit aluminium.ca or X @AAC_aluminium.