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AL CIRCLE

Rising US tariffs push Canada’s aluminium industry to a crossroads

EDITED BY : 5MINS READ

For more than a century, Quebec’s Saguenay–Lac-St-Jean region has been more than just a hub of aluminium production — it’s the soul of Canada’s aluminium industry. The gleaming metal shaped its economy, built its communities, and earned the area its proud nickname: “aluminium valley.” But the deep cross-border ties that sustained it for over a century are now under strain, as Washington’s escalating tariffs threaten to unravel one of North America’s most enduring industrial partnerships.

US and Canada

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An alliance tested by tariffs

The trade rift began in March 2025, when US, invoking national security issue under Section 232 of the Trade Expansion Act, imposed 25 per cent tariffs on Canadian aluminium and steel. By June, those tariffs were doubled to 50 per cent.

The tariffs now apply not only to raw aluminium but also to a wide range of downstream products — from sheets and extrusions to finished components, except aluminium scrap. As the measures took hold, US aluminium prices soared, with the Midwest premium doubling within months. For American producers, it was a short-term windfall. For Canada, it was dislocation and loss.

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