Industry Minister Mélanie Joly has revealed that Quebec’s aluminum industry is poised to benefit from a substantial sum, potentially in the hundreds of millions of dollars, from a $5 billion allocation to support sectors impacted by U.S. tariffs. The majority of Canada’s aluminum output originates from Quebec, with Joly emphasizing that the exact distribution of the tariff support fund by the federal government is still pending.
During a press conference in Montreal on Monday, Joly stated, “The Quebec aluminum sector will receive its fair allocation. Through ongoing discussions with Alcoa, Rio Tinto, and Alouette, substantial investments amounting to hundreds of millions of dollars are anticipated.”
Presently, Canadian aluminum and steel exports are confronted with 50 percent tariffs imposed by the U.S. Jean Simard, president of the Aluminum Association of Canada, echoed Joly’s sentiments at the press event, highlighting that the tariff relief aims to uphold the industry’s competitiveness globally.
Although Canada does engage in aluminum trade with Europe and Asia, the majority of its aluminum is shipped to the U.S., as mentioned by Simard. He mentioned, “In 2024, we reached a record production of 3.3 million tonnes, of which 90 percent was exported, with 90 percent of that figure directed to the U.S.”
Simard further explained that aluminum producers redirected shipments to Europe over the summer due to financial losses from U.S. exports. While contemplating expansion into European and Asian markets, the Canadian aluminum sector acknowledges the importance of maintaining ties with the U.S. market.
He cautioned that discontinuing shipments to the U.S. could create opportunities for other companies to fill the void. “As prices rise in the U.S., there’s a likelihood of metal returning to the U.S. market,” he predicted.
