Ontario Construction News staff writer
The Aluminium Association of Canada says a new 50 per cent tariff imposed by the United States on Canadian aluminium threatens to destabilize North America’s integrated supply chain and disrupt key sectors on both sides of the border.
“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 of the association. “It will impact workers on both sides of the border and disrupt key sectors including defence, construction and automotive.”
The association says the tariff — estimated at $1,349.50 per metric tonne — would make Canadian exports economically unviable and could lead to a significant shift in trade toward Europe and other global markets.
Simard warned the measure could increase U.S. reliance on imports from countries such as China, Russia, India and the Middle East — undermining the national security interests the tariff is meant to protect.
“This move jeopardizes 125 years of cross-border industrial cooperation and risks triggering a fundamental shift in global trade flows,” he said.
The Canadian industry supports efforts to increase U.S. domestic aluminium production, Simard added, but says punitive tariffs don’t create the certainty required for capital-intensive investments.
Canada exports about 2.7 million metric tonnes of aluminium to the U.S. each year, the association says. The metal is used in American manufacturing, including in defence and transportation industries, where more than 700,000 U.S. workers transform it into finished products. That binational value chain contributes over US$228 billion annually to the U.S. economy.
Aluminium production is energy-intensive, and Canadian producers benefit from access to hydropower, which lowers costs and reduces emissions. The association says the power behind Canadian aluminium exports is the equivalent of 40 million megawatt hours — enough to power the state of Nevada or more than 450 data centres.
“Thanks to our hydro-based energy, Canada produces low-carbon, competitively priced and secure aluminium,” Simard said. “That’s a strategic advantage the U.S. should value in today’s energy-constrained environment.”
While U.S. production meets only about one-fifth of its total aluminium demand, Canada supplies a secure and traceable source of the metal, the association says. It argues that maintaining tariff-free access is critical to North American economic and industrial security.
The association is urging U.S. officials to focus instead on curbing unfair trade practices from China, which it says has distorted global markets with state-subsidized overproduction.
In recent years, Canada has introduced several trade measures to protect its aluminium sector, including:
- A digital import monitoring system implemented in 2019
- A real-time traceability system to track each shipment
- New rules to target trade circumvention and impose anti-dumping duties
- Creation of a Market Watch Unit, backed by a $10.5-million investment announced in 2024
Simard says these steps ensure Canadian aluminium is not used to circumvent trade rules and should reassure U.S. policymakers of Canada’s commitment to a fair and transparent trading system.
“Canadian aluminium is not — and will not be — a backdoor for unfair trade,” he said.
The association says it will continue working with American manufacturers, unions, business leaders and lawmakers to preserve the shared North American aluminium value chain.