Canada could financially back aluminum producers if 50% U.S. tariffs persist, trade group says
Aluminium Association of Canada CEO Jean Simard told Reuters in an interview that the early talks could help the sector in the event that Ottawa is unable to reach a planned deal with its key trading partner by July 21.
'It's part of a larger discussion where everything is on the table,' Simard said, adding that no decision has been reached.
Canada recently canceled a digital service tax on U.S. technology companies in order to preserve trade talks with U.S. President Donald Trump, but another irritant remains in the ongoing negotiations.
While the major aluminum producers operating in Canada do not have liquidity problems, Simard said, a 50% U.S. tariff on aluminum imports would inevitably have an impact on finances if it continues longer term.
He added that with the 50% tariff in effect since June 4, it's normal that there are discussions about the impact on businesses' cash flow if the situation continues.
Around half of all aluminum used in the U.S. is imported, with the vast majority coming from Canada.
Simard's comments follow media reports late Friday in which federal industry minister Mélanie Joly said the government is having conversations with Rio Tinto about providing financial assistance due to the crushing U.S. tariffs.
Some Japan buyers agree to pay Q3 aluminium premium of $108/T
Rio Tinto declined comment on Saturday.
A spokesperson for Joly's office said in a statement that Ottawa is in 'active conversations' on how it can best support Canada's aluminum industry in the context of unjustified American tariffs, with the goal to support increased investment in the sector.
U.S. President Donald Trump doubled tariffs on steel and aluminum imports to 50% last month, stepping up pressure on global steel producers and deepening his trade war, to support domestic production of the vital materials for construction.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
17 minutes ago
- Business Recorder
Trump slaps allies Japan, S Korea with 25pc tariffs
WASHINGTON: President Donald Trump announced tariffs of 25 percent on Japan and South Korea on Monday, stepping up pressure on the two key US allies and a dozen other economies to reach trade deals with Washington. Trump issued similar letters to South Africa, Malaysia, Myanmar, Laos and Kazakhstan, saying he would slap duties on their products ranging from 25 percent to 40 percent. The president had said at the weekend that, starting from Monday, he would send a first batch of letters to countries informing them that he would reimpose harsh levies earlier postponed in April. In near-identically worded letters to Japanese and South Korean leaders, Trump said the tariff hikes came as their trading relationships with Washington were 'unfortunately, far from Reciprocal.' The tariffs set out in Trump's latest letters are due to take effect August 1. He warned of further escalation if the countries involved retaliated against the duties. Currently, the affected countries have been hit with a 10 percent levy Trump imposed on almost all trading partners. But Trump said he was ready to lower the new levels if countries changed their trade policies: 'We will, perhaps, consider an adjustment to this letter.' Japan's Prime Minister Shigeru Ishiba said Sunday that he 'won't easily compromise' in trade talks with Washington. White House Press Secretary Karoline Leavitt told reporters Monday that Trump would sign an order later in the day to delay his original July 9 deadline for steeper tariffs to take effect — postponing their imposition to August 1. She added that besides Japan and South Korea, there would be approximately 12 other partners receiving letters from Trump soon. With the deadline extension, Leavitt noted that Trump would set out the 'reciprocal tariff rate' for partners in the coming month as negotiations continue. Trump originally announced sweeping tariffs on world economies on what he called 'Liberation Day' on April 2, claiming the United States was being 'ripped off.' Amid market turmoil, he then suspended the initial tariffs for 90 days, a deadline that would have expired Wednesday without the latest extension.
Business Recorder
19 minutes ago
- Business Recorder
European share rise on tech, banks boost with focus on US trade negotiations
FRANKFURT: European shares ended higher on Monday, driven by gains in technology and bank stocks at the start of a week where investors are on the lookout for any trade-related headlines in the countdown to US President Donald Trump's tariff deadline. The pan-European STOXX 600 index ended 0.4% higher, gaining some ground after clocking a weekly loss on Friday. Most regional indexes rose, with Germany's DAX up 1.2%, France's CAC 40 adding 0.4% and Spain's IBEX gaining 0.7%. UK's FTSE 100 lagged as shares of Shell dropped 2.9% after the energy major said it expects quarterly earnings to be hit by weaker trading in its integrated gas division and losses at its chemicals and products operations. Global risk sentiment remained shaky as US Treasury Secretary Scott Bessent said the United States will make several trade announcements in the next 48 hours. The European Union still aims to reach a trade deal by July 9 after Commission President Ursula von der Leyen and Trump had a 'good exchange', a Commission spokesperson said. 'Trade deals have taken years to agree ... it will be surprising if they get proper long-lasting deals signed very quickly,' Andrew Lapping, chief investment officer at Ranmore Fund Management, said. Trump said on Sunday the US was close to finalising several trade pacts and would notify other countries by July 9 of higher tariff rates. He said they would not take effect until August 1, a three-week reprieve. On Monday, technology stocks were among the biggest boost on the STOXX, with Germany's SAP and Dutch semiconductor equipment makers ASML climbing around 2% each. A gauge of euro zone lenders gained 1.6%, with France's Societe Generale jumping 2.8%, hitting its highest level since 2017 earlier in the day. Capgemini fell 5.6% after the French IT services firm agreed to buy technology outsourcing company WNS for a cash payment of $3.3 billion. European shares had a strong start to the year, with the STOXX 600 hitting an all-time high back in March as a jump in defence companies, along with a global move away from US assets, lifted appetite.
Business Recorder
19 minutes ago
- Business Recorder
Most Gulf markets gain on US trade progress
DUBAI: Most Gulf equities ended higher on Monday as US President Donald Trump signalled progress on multiple trade agreements and announced extended tariff reprieves for several countries. The White House is close to finalising several trade agreements in the coming days and will notify other countries of higher tariffs by July 9, with the new rates effective August 1, Trump said on Sunday. Saudi Arabia's benchmark index rose 0.3%, helped by a 0.8% gain in oil giant Saudi Aramco. Oil shrugged off the impact of OPEC+ hiking output more than expected for August as well as concerns about the potential impact of US tariffs, with prices mostly reversing early losses as a tight physical market lent support. In a show of confidence in oil demand, Saudi Arabia on Sunday raised the August price for its flagship Arab Light crude to a four-month high for Asia. The uncertainty surrounding oil prices, especially with OPEC+ gradually increasing production, remains a key risk for the Saudi market, said Joseph Dahrieh, managing principal at Tickmill. 'However, the market could find support as Saudi Arabia expands its share in the oil market,' he said. Dubai's benchmark index gained 0.9%, hitting a 17-year high, driven by financial shares. Emirates NBD jumped 2.3%, while Dubai Islamic Bank rose 1%. According to Dahrieh, the Dubai stock market's strong fundamentals suggest potential for further growth, while US trade policy risks could continue to weigh on sentiment.
