Apex Aluminum Extrusions rejects US relocation as tariffs threaten exports

A Canadian aluminium extruder is refusing to move its production to the US despite facing a sharp increase in tariffs that could effectively shut it out of one of its largest markets.

Apex Aluminum Extrusions, based in Langley, British Columbia, says more than 40 per cent of its sales previously went to the US. The company expects those exports to fall to zero as US tariff measures on aluminium extrusions intensify.

Darren McQueen, head of Apex, said the combined impact of the latest measures would result in a 100 per cent tariff on the company's selling price from September 15, after Section 338 tariffs are stacked on top of Section 232 duties.

"Forty-plus per cent of our sales were into the U.S., and that will drop to zero," McQueen said.

The company produces aluminium profiles used across a wide range of finished products. Its exposure to the US market means the tariff escalation is already affecting its operations, with Apex having laid off around half of its workforce, according to McQueen.

US tariffs reshape Canada's aluminium extrusion market

The impact is not limited to Canadian exporters. Apex says the tariff environment is also changing competition within Canada's domestic aluminium market.

Because the US measures apply broadly to aluminium extrusions entering the US, producers from other countries are also looking towards Canada as an alternative market.

McQueen said aluminium extrusion imports from Vietnam, Malaysia and Thailand have risen 40 per cent this year, adding pressure on Canadian producers.

"Canada has no barriers, so what we're seeing is, this year alone, a 40-per-cent increase of aluminum extrusions coming in from Vietnam, Malaysia, Thailand," he mentioned.

At the same time, Canada has not imposed equivalent tariffs on comparable aluminium products made in the US, according to McQueen.

That leaves Canadian extrusion producers facing pressure on both sides: access to their US customers is being restricted while competition from overseas suppliers is increasing in their home market.

Apex rejects relocation despite US market pressure

Relocating production to the US could offer Apex a way to avoid the tariffs, but McQueen said the company does not intend to move its operations.

He argued that the company's entire production range could technically be shifted across the border, allowing it to continue serving US customers without the tariff burden while retaining access to Canadian customers.

"We will not move to the U.S., but if we did, we could move all 6,500 profiles to somewhere in the U.S., produce the product, satisfy our U.S. customers tariff-free and satisfy our Canadian customers tariff-free," McQueen said.

The decision highlights the difficult choices facing Canadian manufacturers whose businesses have been built around cross-border trade. While relocating production could provide tariff relief, it would also require companies to move investment, equipment and jobs away from Canada.

For Apex, the immediate priority is instead to maintain its Canadian manufacturing base while seeking stronger protection against imported aluminium products.

Canadian producers seek action from Ottawa

McQueen is calling on the Canadian government to introduce measures to prevent foreign aluminium extrusions from flooding the domestic market.

The company argues that without additional trade protection, Canadian manufacturers could lose both their export markets and domestic market share.

For the aluminium extrusion sector, the combination of higher US tariffs and rising imports into Canada creates a difficult operating environment. Producers must contend with shrinking access to US customers while competing against lower-cost overseas suppliers at home.

Apex's experience illustrates how the latest tariff escalation is moving beyond a dispute over border duties and into decisions about where aluminium products are made, where investment is directed and how Canadian manufacturers can remain competitive.