Targeted Canadian Tariffs on Chinese Aluminum Imports a Win for North American Manufacturing

Targeted Canadian Tariffs on Chinese Aluminum Imports a Win for North American Manufacturing

25% Tariffs on Select Aluminum Products Will Support Regional Investment, Clean Aluminum Production

The Aluminum Association applauded a plan announced today by the Canadian government to impose a 25% tariff (or "surtax") on certain aluminum and aluminum products imported from China. Pending a public review and comment period, the tariffs are slated to be implemented by October 15. The move is consistent with long-time calls by the Aluminum Association and our partners in Canada to strengthen trade enforcement across the region. This decisive move marks a significant step forward in creating a fairer and more level playing field for North American aluminum production.

The decision follows recent action in the region to address unfair trade practices that have long impacted domestic aluminum producers, including increased monitoring and enforcement and tariffs on imports of unfairly traded metal from China, Russia and elsewhere.

Charles Johnson, president & CEO of the Aluminum Association, released the following statement:

"Today's decision is another example of sensible, targeted trade policy that will help ensure that North America continues to be one of the best places on earth to make aluminum and aluminum products. In the United States alone, aluminum firms have invested more than $10 billion in new and expanded plants, including nearly $200 million just this year. Actions like those announced today by Canada will ensure that these investments are fruitful - creating jobs and capturing anticipated demand growth in the coming decades. North America boasts some of the cleanest aluminum production in the world thanks to low-carbon smelting in Canada as well as industry recycling efforts and technology advancement. Making more aluminum here is a win for both the regional economy and the environment. By working together with our fellow USMCA countries, we can ensure that the entire region of aluminum production, fabrication and recycling continues to thrive."

Aluminum demand in North America (United States and Canada) was up 4.3% year-over-year in the first quarter of 2024, according to recent Aluminum Association data - the strongest results since 2022. Aluminum output is expected to grow by about 80% globally by 2050 thanks to demand for sustainable packaging, safe and efficient vehicles, greener buildings and vital infrastructure.

With sustainability an increasingly important driver of future demand for the material, the Aluminum Association recently completed a report, Pathways to Decarbonization: A North American Aluminum Roadmap, that lays out theoretical pathways to achieve industrywide carbon emission reductions consistent with the International Energy Agency's (IEA) Net Zero by 2050 goals. The report concluded that North America enjoys a significant carbon emissions advantage over much of the rest of the global aluminum industry. Moving forward, access to abundant clean energy and investment in new technologies will be central to hitting ambitious emissions targets by mid-century.