Global Trade
22 July 2025
Report: Alcoa to pause Canadian projects in wake of tariff threats
Written by Stephanie Ritenbaugh
Alcoa said it has been forced to pause its growth projects in Canada due to President Trump’s tariffs.
Chief Executive Officer Bill Oplinger told Bloomberg News on Friday the company is “looking very hard at capital investments” in Quebec. “The plans we had for growth projects in Quebec are on hold until we have some resolution on the tariffs.”
The Pittsburgh-based aluminum giant owns two smelting and casting facilities in Quebec, along with a third operated through a joint venture in which it holds a 75% stake, and relies on its Canadian operations to meet U.S. demand.
The U.S. re-imposed Section 232 tariffs at 25% on imported aluminum on March 12, then later announced the import tax would double, effective June 4th.
Diverting shipments
As AMU reported last week, Alcoa’s Canadian smelters bore the brunt of the tariffs, given that about 70% of its output has historically been destined for the U.S. At full run rate, that equates to some 750,000-800,000 metric tons of metal potentially subject to a 50% excise tax.
Alcoa redirected about 100,000t of Canadian metal typically destined for the U.S. market to non-U.S. customers in Q2’25.
The company said it will continue to do so until the Midwest Premium fully reflects the cost of tariffs and logistics, which it pegged at 75¢/lb.
Alcoa was hit with about $90 million in tariff-related expenses in the second quarter, bringing the full total to $115 million.
And Alcoa’s Canadian operations aren’t the only ones in the crosshairs. Trump has threatened Brazil with a new set of import taxes, separate from Section 232, as he targets Lula da Silva’s administration in defense of the country’s former president Jair Bolsonaro.
Tariffs could impact alumina, leading Alcoa to source the feedstock alumina from its Western Australia assets, requiring a significant logistical overhaul, as AMU reported.
