The Canadian aluminum industry is pushing back against a newly announced 50% U.S. tariff, warning the measure could force manufacturers to source materials from China and other distant suppliers while disrupting integrated North American production networks.
The tariff, set at $1,349.50 per metric ton, makes Canadian aluminum exports economically unviable and threatens jobs on both sides of the border, the Aluminum Association of Canada said Tuesday.
“A 50% tariff on Canadian aluminum 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 Aluminum Association of Canada. “It will impact workers on both sides of the border and disrupt key sectors including defense, construction and automotive.”
Industry warns of shift to overseas suppliers
The tariff could push Canadian producers to redirect exports toward the European Union, potentially increasing U.S. dependence on aluminum from China, Russia, India and Middle Eastern countries for a material considered critical to national security, Simard said.
Canada supplies 2.7 million metric tons of aluminum annually to the United States, supporting more than 700,000 American manufacturing jobs. The integrated supply chain contributes over $228 billion to the U.S. economy each year, according to industry figures.
The move threatens 125 years of cross-border industrial cooperation between the two countries, Canadian industry officials said.
Energy advantages at stake
Canadian aluminum production relies heavily on hydroelectric power, making it a lower-carbon alternative in an energy-intensive industry where power costs represent about 40% of production expenses. The annual aluminum exports to the U.S. represent the energy equivalent of 40 million megawatt hours, enough to power Nevada or 460 data centers.
“This measure risks increasing U.S. reliance on aluminum from distant sources — including China, Russia, India and the Middle East — for a material critical to national security,” Simard said. “It jeopardizes 125 years of cross-border industrial cooperation and will trigger a fundamental shift in global trade flows.”
Supply and demand imbalance
While the U.S. produces roughly one million metric tons of primary aluminum annually, it consumes five times that amount. The Canadian industry supports U.S. goals to increase domestic production capacity from 50% to 80%, but argues that tariffs create uncertainty rather than the stability needed for long-term capital investments.
Focus on China trade practices
Canadian officials said the priority should be addressing unfair trade practices by China, whose state-subsidized production has distorted global markets and forced North American smelters to close.
Canada has implemented several measures to prevent circumvention of trade rules, including a $10.5 million investment in 2024 to create a Market Watch Unit and new anti-dumping regulations. The country also operates a real-time aluminum traceability system to track shipments from source to destination.
The Aluminum Association of Canada represents three major producers operating nine smelters across the country, eight of which are located in Quebec. The industry employs more than 9,500 workers.
