U.S. and Canadian aluminum groups urge end to tariff feud, push for joint stance against China

U.S. and Canadian aluminum industry groups are calling for an end to the escalating tariff war between the two nations and a unified strategy to counter Chinese competition after trade negotiations collapsed. The groups argue that the 50% tariffs imposed by both countries—Washington’s 50% tariff on Canadian aluminum and Ottawa’s retaliatory 50% duty on U.S. imports—threaten investment and disrupt North America’s highly integrated aluminum supply chain. The U.S. imports roughly 60% of its primary aluminum, with Canada as its largest foreign supplier. Industry leaders, including Jean Simard of the Aluminium Association of Canada and Chuck Johnson of the U.S. Aluminum Association, emphasized the need for a regional approach to trade policy, addressing transshipment risks, and forming a North American agreement with Canada and Mexico. Simard proposed a “Fortress North America” strategy to protect free trade within the region while blocking imports from nonmarket economies and cracking down on transshipment. Johnson acknowledged that U.S. tariffs under Section 232 have benefited domestic producers in the short term but have also harmed downstream industries, such as aluminum foil manufacturers, which bear higher costs. The uncertainty has left the industry divided and hesitant to commit to long-term investments, complicating efforts to rebuild domestic manufacturing. Both leaders stressed the urgency of finding a collective path forward to counter the larger threat of Chinese overcapacity and potential transshipment of Chinese metal through third countries like Indonesia.