Industry Minister Mélanie Joly announced that Quebec’s aluminum sector is poised to benefit significantly from a $5 billion relief fund aimed at supporting industries impacted by U.S. tariffs. The province, which produces almost all of Canada’s aluminum, is expected to receive a substantial portion of the fund, although the specific allocation details are yet to be finalized.
During a press conference in Montreal, Joly expressed confidence that the Quebec aluminum industry, including key players like Alcoa, Rio Tinto, and Alouette, could potentially receive hundreds of millions of dollars from the fund. Currently, Canadian aluminum and steel exports are subject to a 50% tariff by the U.S., making tariff relief crucial for maintaining competitiveness in the global market, as highlighted by Jean Simard, the president of the Aluminum Association of Canada, who emphasized the sector’s heavy reliance on the U.S. market.
Simard noted that despite exploring opportunities in European and Asian markets, the majority of Canadian aluminum exports still go to the U.S. In response to the challenging trade conditions, some producers have diverted shipments to Europe temporarily. However, completely severing ties with the U.S. market is not a feasible option, as other companies would likely fill the gap, ultimately leading to a return of metal to the U.S. market.
