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AL CIRCLE

From Canada to Europe - a noticeable shift in US aluminium sourcing

EDITED BY : 4MINS READ

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.

From Canada to Europe - a noticeable shift in US aluminium sourcing

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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.

From January to April 2025, the US imported a total of 874,000 tonnes of primary aluminium from Canada. These volumes fluctuated month-to-month due to tariff announcements and market responses: imports started at 248,000 tonne in January, fell to 209,000 tonne in February as tariffs approached, rebounded to 250,000 tonne in March, likely as suppliers front-loaded shipments before hikes and then sharply declined to 167,000 tonnes in April following the surprise tariff doubling.

For a detailed report regarding aluminium recycling click: World Recycled ALuminium Market Analysis Industry forecast to 2032

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