Jean Simard, CEO of the Aluminium Association of Canada, indicated in a Reuters interview that preliminary discussions are underway regarding potential financial support for the aluminum industry should the 50% U.S. tariffs remain in place past the July 21 deadline for negotiations with the United States. “This is part of broader discussions where all options are being considered,” Simard stated, emphasizing that no formal decisions have been made yet.
The Canadian government recently eliminated its digital services tax targeting U.S. tech firms to maintain trade negotiations with President Donald Trump’s administration. However, the U.S. tariffs on aluminum remain a contentious issue in bilateral trade talks.
Although major aluminum producers in Canada currently do not face liquidity issues, Simard noted that a prolonged 50% tariff on aluminum imports from the U.S. would inevitably affect their financial stability over time. Since the imposition of these tariffs on June 4, discussions have naturally emerged concerning their potential impact on business cash flow if sustained.
Approximately 50% of aluminum consumed in the U.S. is imported, with the majority sourced from Canada. This follows reports that Minister of Industry Mélanie Joly mentioned ongoing discussions with Rio Tinto about potential financial assistance due to the heavy U.S. tariffs. Rio Tinto declined to comment, while a spokesperson for Joly confirmed that the Canadian government is engaged in active conversations about supporting the aluminum industry against what they describe as unjustified American tariffs, aiming to encourage greater investment in the sector.
President Donald Trump increased steel and aluminum import tariffs to 50% last month, intensifying pressure on global producers and escalating his administration’s trade conflict to bolster domestic production of materials critical to construction and infrastructure.
— news from Reuters
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Canada could financially back aluminum producers if 50% U.S. tariffs persist, trade group says
Aluminium Association of Canada CEO Jean Simard told Reuters in an interview that the early talks could help the sector in the event that Ottawa is unable to reach a planned deal with its key trading partner by July 21. n nSign up here. n n”It ‘s part of a larger discussion where everything is on the table,” Simard said, adding that no decision has been reached. n nCanada recently canceled a digital service tax on U.S. technology companies in order to preserve trade talks with U.S. President Donald Trump, but another irritant remains in the ongoing negotiations. n nWhile the major aluminum producers operating in Canada do not have liquidity problems, Simard said, a 50% U.S. tariff on aluminum imports would inevitably have an impact on finances if it continues longer term. n nHe added that with the 50% tariff in effect since June 4, it ‘s normal that there are discussions about the impact on businesses ‘ cash flow if the situation continues. n nAround half of all aluminum used in the U.S. is imported, with the vast majority coming from Canada. n nSimard ‘s comments follow media reports late Friday in which federal industry minister Mélanie Joly said the government is having conversations with Rio Tinto about providing financial assistance due to the crushing U.S. tariffs. n nRio Tinto declined comment on Saturday. A spokesperson for Joly ‘s office said in a statement that Ottawa is in “active conversations” on how it can best support Canada ‘s aluminum industry in the context of unjustified American tariffs, with the goal to support increased investment in the sector. n nU.S. President Donald Trump doubled tariffs on steel and aluminum imports to 50% last month, stepping up pressure on global steel producers and deepening his trade war, to support domestic production of the vital materials for construction. n nReporting by Allison Lampert in Montreal, Editing by Nick Zieminski and Alistair Bell