Tariffs on Canadian Aluminium Threaten American Jobs and Consumer Prices

The Aluminium Association of Canada opposes a U.S. 25% tariff on Canadian aluminium, warning it will raise costs and hurt American workers and consumers.

The Aluminium Association of Canada has firmly opposed the U.S. government’s recent decision to impose a 25% tariff on Canadian aluminium.

This move is anticipated to have significant economic repercussions for both American labor and consumers alike.

Economic Repercussions of the Tariff

With the new tariffs in place, aluminium prices are expected to soar almost immediately.

This spike could negatively impact numerous industries reliant on aluminium for their production needs.

Currently, the United States consumes six times more primary aluminium than it manufactures, heavily relying on Canadian imports to fill that gap.

Jean Simard, President and CEO of the Aluminium Association of Canada, highlighted the immediate adverse effects this tariff will have on American workers and consumers as aluminium costs rise.

The association underscored the interdependence of the aluminium sectors across North America, noting that approximately 9,500 Canadians working in the aluminium industry support over 500,000 manufacturing jobs in the U.S., contributing more than $200 billion annually to the American economy.

Collaboration and Strategic Responses

In light of the tariffs, the Canadian aluminium industry will proactively seek collaboration with government officials, business leaders, and labor unions to minimize the economic fallout.

Additionally, they plan to engage U.S. stakeholders, including businesses and policymakers, to make them aware of the potential economic harm caused by these tariffs.

The Aluminium Association of Canada articulated that the real threat to the North American aluminium market stems from state-supported overproduction in China, not from Canada.

They advocate for both the U.S. and Canada to redirect their efforts toward addressing unfair trade practices from China rather than imposing tariffs on Canadian aluminium.

Proactive Measures Against Chinese Trade Practices

Looking ahead, the association stressed the pressing need for both nations to come together against the disruptive impacts of Chinese trade practices linked to substantial state subsidies affecting the entire aluminium sector.

Canada is already taking proactive measures to align its trade policies with those of the U.S. to shield North America from the negative consequences of Chinese aluminium dumping.

Some of these measures include a 25% surtax on Chinese aluminium imports, establishing a Market Watch Unit within the Canada Border Services Agency for aluminium trade oversight, reinforcing anti-circumvention strategies to prevent re-routing, implementing an Aluminium Imports Monitoring System since 2019, and creating a real-time digital tracking system for metal shipments.

Ultimately, the Aluminium Association of Canada maintains that Canadian aluminium should be exempt from these tariffs.

They emphasize its critical role in the North American supply chain.

With U.S. production capped at one million metric tons per year, imposing tariffs on Canadian imports will only drive up costs for American manufacturers and consumers, further complicating efforts to manage inflation.

Source: Smallbiztrends