Canada is considering potential financial assistance for major aluminum producers, such as Rio Tinto, to mitigate the impact of US tariff policies.
Financial Aid for Aluminum Companies
Canada may offer support to aluminum producers if the 50% tariff on aluminum imports remains in effect beyond the mid-term. According to Jean Simard, CEO of the Aluminium Association of Canada, discussions are underway that could help sustain the industry if Ottawa fails to reach a trade deal with the US by the deadline.
US Tariffs on Aluminum
The 50% tariff on aluminum imports, imposed by US President Donald Trump, has been in place since June 4. Last year, Canada exported 3.2 million tons of aluminum to the US, where approximately 50% of the aluminum used comes from imports.
Consequences of Trump's Tariff Policies
Trump's tariffs on steel and aluminum have led to undesirable outcomes for the US manufacturing sector. Sales in the sector have dropped, resulting in job losses, with end-users of aluminum encountering issues in the physical market.
Discussions regarding financial assistance for Canada's aluminum sector are ongoing amid uncertainties related to the 50% tariff and its potential economic impact.