Industry Minister Mélanie Joly announced that Quebec’s aluminum industry is poised to benefit significantly from a $5 billion relief fund aimed at supporting sectors impacted by U.S. tariffs. With the majority of Canada’s aluminum production located in Quebec, Joly emphasized that the exact allocation of funds from the tariff support package is still under consideration.
During a press conference in Montreal, Joly expressed confidence that the Quebec aluminum sector would receive a substantial portion of the fund, potentially amounting to hundreds of millions of dollars through ongoing discussions with major industry players like Alcoa, Rio Tinto, and Alouette.
Currently, Canadian aluminum and steel exports are subjected to 50 percent tariffs by the United States. Jean Simard, the president of the Aluminum Association of Canada, stressed the importance of tariff relief in maintaining the sector’s competitiveness globally. While acknowledging Canada’s presence in European and Asian markets, Simard highlighted the heavy reliance on U.S. exports, with approximately 90 percent of Canadian aluminum being shipped to the U.S.
Simard noted that aluminum producers had shifted some exports to Europe due to financial losses in the U.S. market. Despite exploring growth opportunities in other regions, the Canadian aluminum sector remains intertwined with the U.S. market, as cutting ties completely could lead to market reentry by other competitors.
He cautioned that any halt in Canadian shipments to the U.S. would create an opening for alternative companies to fill the void in the U.S. market as prices increase, potentially resulting in a rebound of metal imports back to the U.S.