From Canada to Europe - a noticeable shift in US aluminium sourcing
Canadian aluminium smelters are sharply reducing primary metal exports to the US following an escalation in tariffs under the Trump administration. Beginning in March 2025, the US reinstated a 25 per cent tariff on Canadian aluminium, which was then unexpectedly doubled to 50 per cent in June, causing significant disruption to established trade flows and leaving Canadian exporters little time to adjust.
Major producers such as Alcoa Corp have led this shift by diverting more than 100,000 metric tons of Canadian aluminium away from US buyers to alternative global markets, mainly in Europe. This pivot has been facilitated by the fact that approximately 30 per cent of Alcoa's Canadian production is not bound by annual contracts, allowing flexible redirection to more favourable markets.
Recent trade data confirms this change, with Canada exporting 11,800 tonne to the Netherlands and 25,500 tonne to Italy in April and May 2025, a sharp increase compared to historical levels. As a result, US imports of primary aluminium from Canada fell to just 268,000 tonne in May, the lowest level since December 2022.
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