Canada's steel industry is bracing for tariff pain. Aluminum? Not so much

Andrew Kurjata · CBC News

· Posted: Mar 02, 2025 9:00 AM EST | Last Updated: March 2

In the on-again, off-again speech of tariffs connected Canadian products being sold into the United States, Jérôme Pécresse has proposal for his industry: "Be patient, beryllium calm, beryllium agile."

Pécresse is main enforcement of aluminum for Rio Tinto, which includes overseeing the company's Canadian smelter operations.

Though astir of those are successful Quebec, where Pécresse is based, this past week helium paid a sojourn to Kitimat, connected B.C.'s North Coast, wherever a Rio Tinto aluminum smelter employs astir 1,100 radical successful the assemblage of conscionable implicit 8,000.

But, Pécresse said, nary 1 successful the assemblage should beryllium disquieted astir losing their job.

LISTEN | Pécresse on wherefore he's not losing slumber implicit aluminum tariffs: 

While Canadian alloy producers accidental they person already felt the impact of tariff threats with more pain to come, their aluminum-making counterparts stay comparatively sanguine.

"Obviously it's a concern," Pécresse said, speaking to CBC Daybreak North host Carolina de Ryk, saying yet markets similar stability.

But helium besides pointed retired that since each different aluminum-producing state that sells to the United States is getting deed by the aforesaid tariffs, Canada's presumption remains strong.

"If everybody's taxed the same, it's astir apt thing that's not going to materially alteration our volumes... into the U.S. market."

WATCH | Is Canada acceptable for Tump's tariffs?:

Pécresse's assurance is borne retired successful the numbers: Unlike steel, which has near-parity erstwhile it comes to Canada-U.S. trade, the United States' dependence connected Canada for aluminum is stark: the U.S. imports much than 3 times arsenic overmuch aluminum from Canada arsenic it exports.

According to World Bank data, the U.S. is the world's largest aluminum importer, with the bulk coming from its bluish neighbour.

And U.S.-based buyers cognize it: Jean Simard, CEO of the Aluminum Association of Canada, says astir contracts betwixt Canada and the United States person a clause built successful agreeing that the American institution purchasing Canadian aluminum volition wage immoderate tariffs are enactment successful place.

In fact, erstwhile Trump imposed aluminum tariffs during his archetypal term, Canadian companies saw their worth spike, prompting 1 idiosyncratic successful the manufacture to picture it arsenic the president penning "a cheque for $600 cardinal to Canadian aluminum producers," arsenic astir fractional a cardinal successful worth flowed northward.

Further, the U.S. doesn't person overmuch successful the mode of options for home production: it's estimated that conscionable 1 Canadian smelter comes adjacent to equalling the full output of the U.S. industry. 

WATCH | How aluminum tariffs could interaction Canada's economy: 

One crushed for that is the outgo of energy successful the United States compared to Canada, a cardinal constituent successful moving a smelter. Quebec and B.C. person entree to inexpensive hydropower to tally their plants, U.S. producers bash not.

Mario Simard and Alexis Brunelle-Duceppe, Bloc Québécois MPs for the Jonquière and Lac-Saint-Jean ridings which person thousands of aluminum jobs, told Radio-Canada that the Canadian hydropower vantage can't easy beryllium replicated.

"A dam can't beryllium folded," Simard said successful a French-language interview. "It can't beryllium enactment successful a suitcase, moved southbound of the border."

Brunelle-Duceppe said it was pugnacious to recognize what Trump hoped to summation for the U.S.-based manufacture by tariffing Canadian aluminum, given the realities of the industry.

"Aluminum smelters closed successful the United States because, precisely, it costs excessively overmuch energy," helium said successful French. 

That sentiment has been echoed by U.S. aluminum producers, including Pittsburgh-based Alcoa, which besides operates successful Canada. CEO Bill Oplinger was quoted by Reuters informing a mining league that helium expects tariffs to outgo the U.S. aluminum manufacture astir 20,000 jobs.

"It's atrocious for American workers," Oplinger is reported arsenic saying, adding that he's lobbied for an objection for Canadian aluminum. He said without cheaper energy successful the United States, there's nary mode for that country's aluminum manufacture to vie with Canada's, adjacent with the summation of tariffs.

And successful Kitimat, Pécresse said Rio Tinto has the added bonus of casual entree to Asian markets done the community's deepwater port.

WATCH | Canada isn't the lone country preparing for tariffs. Here's what Mexico is doing:

None of this means determination won't beryllium immoderate interaction connected Canadians arsenic a effect of aluminum tariffs.

Like steel, aluminum is passed backmost and distant crossed the borderline during the accumulation of products similar cars oregon operation materials.

As a result, tariffs volition summation the product end-price for consumers. 

And companies that merchantability oregon bargain products with aluminum volition besides beryllium deed erstwhile making cross-border income — specified arsenic beer cans and lids that are made successful the U.S. utilizing Canadian aluminum and past imported backmost crossed the borderline by B.C. brew makers.

But for those progressive successful the accumulation of aluminum itself, manufacture leaders say, it should beryllium concern arsenic usual.

"With the existent situation, determination is nary interaction connected our jobs astatine all, and determination is nary interaction connected our investment," Pécresse said. "We are not stopping."