Canada’s aluminium industry warns that new US tariffs will drive up costs for American consumers and businesses while failing to address unfair Chinese trade.
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| Canada pushes back against US aluminium tariffs, emphasizing its key role in North America's economy and the dangers of rising costs for American industries. Image: ChicHue |
Montreal, Canada — February 2, 2025:
The 25% tariffs imposed by the US administration on Canadian aluminium are a major setback for the industry, with significant consequences for American workers and consumers. Jean Simard, President and CEO of the Aluminium Association of Canada, expressed disappointment but noted that the industry had anticipated this move and was prepared for it. He warned that the tariffs would lead to an immediate rise in aluminium prices, affecting workers and consumers across the US.
Canada’s 9,500 aluminium workers produce metal that is processed and used in manufacturing by over 500,000 American workers, generating more than $200 billion in economic output. The two economies are deeply integrated, benefiting workers, consumers, and communities on both sides of the border. The industry and government will continue working together to protect Canada’s domestic aluminium sector, which has played a vital role in North America’s economic and defence security for over a century.
The industry will also engage with American stakeholders, including customers, businesses, and workers, to highlight the impact of these tariffs on their daily livelihoods. The broader issue remains China’s unfair trading practices, driven by state subsidies that have distorted the global aluminium market for the past two decades. These non-market policies have forced smelters to close and made it difficult for responsibly produced metal to remain competitive. Canada has committed to ensuring that it does not become a gateway for such trade practices, aligning its trade policies with the US to strengthen North America’s economic security.
In response, Canada has implemented several measures over the past five years. These include a 25% surtax on Chinese aluminium imports, the creation of a Market Watch Unit within the Canada Border Services Agency, and new regulations to prevent trade circumvention. Additionally, Canada introduced an aluminium import monitoring system in 2019 and developed the world’s first digital aluminium traceability system to track shipments in real time.
Simard stressed that Canadian aluminium must remain exempt from tariffs due to its strategic role in North America’s industrial value chain. The US produces only one million metric tons of primary aluminium annually but consumes six times that amount. The tariffs, he argued, would only increase costs for US consumers and businesses, counteracting efforts to reduce inflation.