Canada is considering providing financial support to aluminium producers to deal with US tariffs
July 7, 2025
Canada is exploring the possibility of providing financial support to large aluminium producers affected by the US trade war, such as Rio Tinto.
Jean Simar, the CEO of the Aluminium Association of Canada, said on Saturday (July 5) that if the 50% tariff on aluminium imports imposed by the United States persists in the medium term, this early discussion could be helpful to the industry.
Simar pointed out that although the major aluminium producers operating in Canada currently have no liquidity problems, if the 50% US tariff persists, it will inevitably have an impact on their finances. He said that this discussion was part of a broader dialogue, "Anything is possible", and no decision has been made yet.
Currently, about half of the aluminium used in the United States is imported, with the vast majority coming from Canada. Last year, Canada exported 3.2 million tons of aluminium to the United States. Simar's comments came after media reports later on Friday that Canadian Industry Minister Melanie Jolly said the government was in talks with Rio Tinto on providing financial aid to deal with the US's tough tariffs.
Jolly mentioned these talks when meeting with business leaders from the Saggnay region of Quebec (an important aluminum production center in Canada, also known as the "Aluminum Valley") last Thursday (July 3rd). A spokesperson for Jolly's office said that Ottawa is in "active dialogue" to explore how best to support Alcan in dealing with unreasonable US tariffs, with the aim of promoting investment growth in the industry.
Last month, US President Trump doubled the import tariffs on steel and aluminum to 50%, intensifying the pressure on global steel producers and deepening the trade war, with the aim of supporting the production of key materials for the domestic construction industry.
