U.S.A. & CANADA'S ALUMINUM/IMPACT OF TARIFFS

 Canada ranks fourth globally for primary Aluminium production and is a  significant player in the global industry.

Its robust industry produces approximately 3.3 million tons of Aluminum per year..

Most of Canada's Aluminum is produced in Quebec, due to the Province's abundant and cost-effective hydroelectric power. Quebec is home to eight out of Canada's nine smelters, and nearly 90% of Canada's production occurs there.

Canada’s Aluminum exports to the U.S. are reported in various sources. According to the United Nations COMTRADE database cited in the web results, U.S. imports from Canada of Aluminum were valued at US$11.49 billion in 2024.

In terms of value, if we use the COMTRADE figure of $11.49 billion out of $17.7 billion total imports, that’s approximately 65% of total Aluminum imports by the USA were sourced from Canada.

Bauxite's role as a primary Aluminum source holds immense significance. Even though Canada does not mine bauxite, it imports alumina (Aluminum oxide) for production. Countries such as Australia, India, and China are among the leading global bauxite producers.

The United States relies significantly on imported Aluminum from Canada due to it being a strategic metal used prevalently within critical industries such as aerospace, automotive, and defense.

The highly integrated North American Aluminum market faces challenges from potential tariffs but despite these hindrances, due to geographic proximity and economic integration, Canada remains a fundamental Aluminum supplier to the U.S.

If tariffs significantly impact Canada's Aluminum exports to the U.S., it has several supplier alternatives including China, the UAE, Mexico, India, Bahrain, South Korea, and Germany. However, trade agreements and tariffs, supply chain adjustments, and market competition present certain challenges in sourcing from these alternative suppliers.

While a domestic Aluminum industry remains a theoretical possibility, its realization is contingent upon substantial capital expenditure for infrastructure and technology, which may prove economically prohibitive.

Tariffs, like the threatened 25% by the U.S., have multiple impacts on the U.S. economy.

The integrated North American market means pain would be mutual, with U.S. manufacturers likely bearing higher costs and limited alternatives, while Canada could redirect some exports (e.g., to Europe or Asia) over time.

"For information purposes only"

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