U.S. President Donald Trump signed an executive order on Tuesday doubling the tariffs on steel and aluminum imports to 50 per cent, a move that the Aluminium Association of Canada is calling a “misguided measure that threatens the security of North America’s integrated supply chain.”
“A 50 per cent 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. “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,” said Simard. “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 per cent. 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 more than $228 billion annually to the U.S. economy.
The association said 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.
It also cautioned that 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.
