Canadian aluminum exports face a fresh blow as US tariffs climb to 100%

Canadian aluminum fabricators are warning that their US sales could disappear after the latest US tariff measures pushed duties on some aluminum products to as high as 100 per cent, making Canadian-made goods less competitive in the US market.

The new measures include a 50 per cent US tariff on aluminum products that previously benefited from exemptions. When combined with the existing 50 per cent tariff rate on foreign supplies, some products now face a total levy of 100 per cent.

For Canadian manufacturers that rely heavily on US customers, the change is already affecting export plans.

Apex Aluminum Extrusions Ltd., a British Columbia-based manufacturer of aluminum parts for the construction industry and data centers, generates about 40 per cent of its sales from the US.

“Our US business is dead,” Chief Financial Officer Darren McQueen said. “There will be nothing more crossing the border.”

The latest tariff measures were included in an annex published by the White House on September 8, alongside other trade actions affecting Canadian products.

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Aluminum exports face growing pressure

AluQuebec, an industry group representing Quebec’s aluminum supply chain, estimates that more than CAD 600 million (USD 428.91 million) of Canadian annual exports to the US are linked to the newly targeted products, including aluminum bars and pipes.

The group said the figure represents roughly one-fifth of Canadian shipments of non-primary aluminum products to the US.

“This latest round of price hikes significantly changes the landscape for small- and medium-sized enterprises in the aluminum sector, particularly those that produce extrusions,” AluQuebec head Charlotte Laramée said.

“With tariffs that could reach 100 per cent, the very ability of many of our companies to continue exporting to the United States is being called into question,” she said.

Canada accounted for almost half of US aluminum-product imports for domestic consumption last year, according to the US International Trade Administration. Most of Canada’s primary aluminum production comes from Quebec, which is home to major producers including Alcoa and Rio Tinto.

Primary aluminum producers have benefited from selling into the US, where domestic supply remains limited and prices are high. Fabricators and downstream manufacturers face a different situation because tariffs increase the cost of processed products and can make it harder to pass those additional costs on to customers.

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Fabricators prepare for weaker US orders

“We understand that it likely will lead to loss of US orders,” Executive Vice President Shawn Munroe said. He added that the measures “will disrupt supply chains that have been in place for decades, and cause pain to us and our US clients.”

Canadian fabricators also expect greater competition inside their domestic market as companies look for alternative customers after losing US business.

The Canadian aluminum industry is calling on Prime Minister Mark Carney’s government to introduce tariff-rate quotas on US aluminum products.

Canada doubled its counter-tariffs on US aluminum products to 50 per cent on September 8, although Canadian buyers can seek government relief that allows them to avoid or recover the duties.

Industry representatives argue that these remissions could leave Canadian manufacturers competing against US suppliers that face fewer barriers in the Canadian market.

“We face very significant barriers entering the US market, but we are effectively giving them remissions and inviting them to compete in the Canadian market,” said Jamie Neil, president of Ontario-based Dajcor Aluminum.

The combination of higher US duties and competition at home is therefore putting additional pressure on Canadian aluminum fabricators as they reassess where they can sell their products.

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