Canada is considering financial aid for its aluminum producers if the United States continues to enforce a steep 50% tariff on metal imports. The Aluminum Association of Canada confirmed early talks are underway, though no final decision has been made.
Jean Simard, CEO of the trade group, told Reuters that major producers like Rio Tinto could see financial strain if the tariffs persist beyond the short term. While current liquidity remains stable, prolonged tariffs could hit companies’ cash flow hard.
Simard emphasized that “everything is on the table” as Ottawa scrambles to avoid economic fallout if trade talks with Washington don’t lead to a resolution by July 21. Canada already withdrew a digital tax to keep negotiations alive.
Meanwhile, U.S. President Donald Trump has doubled down on protectionist trade policies. Last month, he raised tariffs on aluminum and steel imports to 50%, aiming to strengthen domestic industries and reduce foreign competition.
Canada supplies the vast majority of aluminum used in the U.S., meaning these tariffs directly threaten Canadian exports. Simard’s remarks came shortly after reports that the government is in talks with Rio Tinto about financial assistance.
Industry Minister Mélanie Joly confirmed ongoing conversations to support the sector. Her office stated that Ottawa is actively exploring ways to protect the aluminum industry and boost investment amid what it calls unjustified American trade measures.