The Aluminium Association of Canada has issued a strong condemnation of the 25% tariffs imposed by the U.S. administration on Canadian aluminium, warning of serious economic consequences for American workers and consumers.
These tariffs are set to escalate the cost of aluminium, adversely impacting industries that depend on this crucial metal for manufacturing. The U.S. is heavily reliant on aluminium, consuming six times more than it produces, with Canada being a vital supplier to bridge this gap.
Jean Simard, President and CEO of the Aluminium Association of Canada, emphasized that “this situation will unfortunately impact workers and consumers in America with the immediate increase on the price of aluminium.”
The association pointed out the interlinked nature of North American aluminium industries, noting that 9,500 Canadian aluminium workers support over 500,000 American manufacturing jobs, contributing more than $200 billion to the U.S. economy each year.
To navigate the challenges posed by these tariffs, the Canadian aluminium industry plans to collaborate closely with government officials, business leaders, and unions to maintain economic stability. Additionally, the industry seeks to engage with U.S. stakeholders—including businesses, workers, and policymakers—to highlight the adverse economic effects of the tariffs.
The Aluminium Association of Canada also stressed that the real threat to the North American aluminium sector stems from China’s state-subsidized overproduction, rather than from Canada itself. The organization urged both countries to focus on addressing unfair Chinese trade practices instead of imposing tariffs on Canadian aluminium. “Going forward, the focus for our industry and our countries must be on tackling the devastating impacts of unfair Chinese trading practices stemming from substantial state subsidies within the entire aluminium ecosystem,” the statement remarked.
In response to concerns over Chinese aluminium dumping, Canada has already implemented several measures to align its trade policies with the U.S. These measures include:
– Enforcing a 25% surtax on Chinese aluminium imports.
– Establishing a Market Watch Unit within the Canada Border Services Agency to oversee aluminium trade.
– Strengthening anti-circumvention rules to prevent transshipment.
– Launching an Aluminium Imports Monitoring System in 2019.
– Developing a digital traceability system to monitor metal shipments in real-time.
The association reiterated the necessity for Canadian aluminium to remain exempt from tariffs, citing its strategic significance in the North American industrial supply chain. With U.S. production limited to one million metric tons annually, imposing tariffs on Canadian imports will only inflate costs for American manufacturers and consumers, undermining attempts to control inflation.
