Canadian aluminum exports face a fresh blow

Canadian aluminum fabricators are warning that their US sales could disappear after the latest US tariff measures pushed duties on some aluminum products to as high as 100 per cent, making Canadian-made goods less competitive in the US market.

The new measures include a 50 per cent US tariff on aluminum products that previously benefited from exemptions. When combined with the existing 50 per cent tariff rate on foreign supplies, some products now face a total levy of 100 per cent.

For Canadian manufacturers that rely heavily on US customers, the change is already affecting export plans.

Aluminum exports face growing pressure

AluQuebec, an industry group representing Quebec’s aluminum supply chain, estimates that more than CAD 600 million (USD 428.91 million) of Canadian annual exports to the US are linked to the newly targeted products, including aluminum bars and pipes.

The group said the figure represents roughly one-fifth of Canadian shipments of non-primary aluminum products to the US.

“This latest round of price hikes significantly changes the landscape for small- and medium-sized enterprises in the aluminum sector, particularly those that produce extrusions,” AluQuebec head Charlotte Laramée said.

“With tariffs that could reach 100 per cent, the very ability of many of our companies to continue exporting to the United States is being called into question,” she said.

Canada accounted for almost half of US aluminum-product imports for domestic consumption last year, according to the US International Trade Administration. Most of Canada’s primary aluminum production comes from Quebec, which is home to major producers including Alcoa and Rio Tinto.

Primary aluminum producers have benefited from selling into the US, where domestic supply remains limited and prices are high. Fabricators and downstream manufacturers face a different situation because tariffs increase the cost of processed products and can make it harder to pass those additional costs on to customers.