The Aluminium Association of Canada has strongly criticized the 25% tariffs imposed by the U.S. administration on Canadian aluminium, warning of significant economic repercussions for American workers and consumers.
The tariffs will immediately increase the cost of aluminium, affecting industries that rely on the metal for manufacturing. The U.S. consumes six times the amount of primary aluminium it produces, and Canada plays a critical role in supplying the shortfall.
“This situation will unfortunately impact workers and consumers in America with the immediate increase on the price of aluminium,” said Jean Simard, President and CEO of the Aluminium Association of Canada.
The association highlighted the interdependence of North American aluminium industries, stating that 9,500 Canadian aluminium workers supply metal to over 500,000 American manufacturing jobs, generating more than $200 billion in U.S. economic output annually.
The Canadian aluminium industry intends to work closely with government officials, business leaders, and unions to maintain economic stability despite the tariffs.
The industry also plans to engage with U.S. stakeholders—including businesses, workers, and policymakers—to underscore the negative economic impact of the tariffs.
The Aluminium Association of Canada stressed that the real threat to the North American aluminium sector comes from China’s state-subsidized overproduction, not from Canada. The organization urged both nations to prioritize addressing unfair Chinese trade practices rather than imposing tariffs on Canadian aluminium.
“Going forward the focus for our industry and our countries must be set on addressing the devastating impacts of unfair Chinese trading practices stemming from massive state subsidies on the entire aluminium ecosystem,” the statement noted.
Canada has already taken several measures to align its trade policies with the U.S. to protect North America from Chinese aluminium dumping, including:
- Implementing a 25% surtax on Chinese aluminium imports.
- Establishing a Market Watch Unit within the Canada Border Services Agency to monitor aluminium trade.
- Enhancing anti-circumvention rules to prevent transshipment.
- Launching an Aluminium Imports Monitoring System in 2019.
- Developing a digital traceability system to track metal shipments in real-time.
The association reiterated that Canadian aluminium should remain exempt from tariffs due to its strategic importance in North America’s industrial supply chain. With U.S. production limited to one million metric tons per year, tariffs on Canadian imports will increase costs for American manufacturers and consumers, counteracting efforts to curb inflation.
Image: Envato
This article, “Aluminum Assoc. of Canada: US Tariffs on Canadian Aluminium WIll Disrupt Industry, Drive Up Costs” was first published on Small Business Trends