US aluminium tariff puts pressure on American buyers as Canada sees opening for trade deal

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US aluminium buyers are bearing much of the cost of the country’s 50 per cent tariff on imported aluminium, according to Canadian Prime Minister Mark Carney, who sees the resulting price pressure as a potential opening for a wider trade agreement between Canada and the US.

Speaking to reporters outside a Rio Tinto aluminium facility in Quebec, Carney told US aluminium prices have risen sharply since the tariff was introduced in June 2025. The US aluminium producer price index increased 52 per cent between June 2025 and June 2026, he said.

“Some of that is international prices, but most of that is pass-through of the tariff,” Carney said. “That’s not a good situation for American companies.”

Aluminium becomes a key point in trade talks

For Canada, the impact of higher US aluminium prices could provide an opportunity to push for changes to the tariffs as part of broader trade negotiations.

Carney said Canadian trade officials are arguing that the two countries could reach a “win-win” arrangement covering aluminium, steel and automotive trade, but stressed that these sectors are interconnected.

“We can discuss changes that are a win-win for the US and Canada when it comes to the aluminum, steel and auto sectors, but they are connected,” he stated.

Canada is seeking to reduce or eliminate US tariffs on what Carney describes as “strategic sectors”, with aluminium and steel among the key areas alongside automobiles and lumber.

The metal tariffs were imposed by US President Donald Trump under Section 232 of the Trade Expansion Act, which allows tariffs to be introduced on national security grounds.

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Why the US aluminium price matters

The rise in US aluminium prices highlights how import tariffs can extend beyond the producers and exporters directly affected by the duties.

For companies that rely on imported aluminium as a raw material, higher prices can increase input costs across manufacturing and other downstream industries. Carney's comments suggest that Canada is using this pressure to make the case that tariff changes could benefit businesses on both sides of the border.

At the same time, the US and Canada continue to have wider disagreements over trade.

US Trade Representative Jamieson Greer and other US officials have called on the Canadian government to address concerns including Canada's counter-tariffs on US-made automobiles, trade controls on dairy products and the removal of US alcohol from shelves operated by provincial liquor agencies.

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Aluminium tariffs tied to wider trade relationship

Carney made clear that Canada is not looking for an aluminium-only agreement.

“We’re not interested in having a very targeted deal without connecting other sectors,” he mentioned.

That means any potential change to US aluminium tariffs is likely to form part of a broader negotiation covering several strategic industries rather than being handled as an isolated measure.

For the aluminium market, however, the issue remains significant. The sharp increase in US aluminium prices since the tariff was introduced demonstrates how trade policy can influence costs for companies purchasing the metal, while Canada continues to position itself as an important supplier in the North American market.

If the two countries fail to reach an agreement, Trump has indicated that additional US tariffs could be extended to a wider range of Canadian-made products, including milk, hockey equipment, beer and plywood.

For now, aluminium remains one of the sectors at the centre of the negotiations, with Canada seeking tariff relief while pointing to the impact higher metal prices are having on US buyers.

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