Canadian aluminium extruders seek trade protection amid tariffs and import pressure

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Canada's aluminium extrusion industry is calling on the federal government to introduce trade protection measures, arguing that rising imports and US tariffs are placing increasing pressure on domestic manufacturers even as aluminium prices remain strong.

Although aluminium has been one of the best-performing base metals over the past year, extrusion companies—which process aluminium billets into products used in construction, automotive, industrial equipment and other applications—say business conditions have deteriorated.

Mike Flynn, President of Apel Extrusions Ltd., said the sector has already lost around 500 jobs since March 2025, representing about 12.5 per cent of its estimated 4,000-person workforce. He warned that another 800 jobs could be lost by the end of the year without policy intervention.

Canada is the world's fourth-largest aluminium producer, accounting for around 4.5 per cent of global output. The country produced 3.3 million tonnes of aluminium in 2024, with approximately three million tonnes exported, 90 per cent of which went to the United States, according to the Aluminum Association of Canada.

While Canadian smelters continue to benefit from low-carbon hydropower and higher aluminium prices, extrusion companies say they have been hit harder by US trade measures. The sector exports about 40 per cent of its products to the United States, making it particularly vulnerable to tariffs.

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US tariffs on aluminium products were introduced at 25 per cent in March 2025, increased to 50 per cent in June 2025, and later expanded to apply to the full value of aluminium-containing products rather than only their aluminium content.

Industry representatives say the tariffs have significantly reduced cross-border business and are now seeking support from the Canadian government rather than relying solely on trade cases before the Canadian International Trade Tribunal (CITT).

The federal government said it continues to assess measures to support Canada's aluminium sector through the Aluminum Trade Monitoring Task Force, including promoting domestic production under the Buy Canadian policy and imposing tariffs on certain aluminium imports containing Chinese-smelted and cast aluminium.

Extrusion companies are also raising concerns over trade diversion, claiming that imports from countries including Vietnam, Thailand, Turkey and the United Arab Emirates have increased sharply following US tariff measures.

According to industry data, compared with average monthly export volumes in 2023 and 2024, aluminium extrusion exports to Canada have risen by 60 per cent from Vietnam, 263 per cent from Thailand, 43.5 per cent from Turkey and 105.6 per cent from the UAE.

Industry representatives are calling for trade measures similar to those introduced for Canada's steel sector, arguing that they are seeking fair market conditions rather than financial support.

However, some analysts caution that tariffs and import quotas could increase costs for downstream manufacturers, potentially affecting Canada's broader industrial competitiveness.

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