Alcoa Projects $90M Hit from U.S. Aluminum Tariffs on Canadian Imports

Aluminum giant Alcoa (NYSE:AA) said it expects a $90 million impact in the current quarter due to U.S. tariffs on aluminum imports from Canada. The announcement follows U.S. President Donald Trump’s ongoing tariff policies, including a 25% duty on imported aluminum, which have significantly disrupted global supply chains.

Speaking on a post-earnings call, Alcoa CEO William Oplinger said about 70% of the company’s aluminum produced in Canada is exported to U.S. customers and is now subject to the 25% import tariff. “The net annual result is approximately $100 million negative for our business,” Oplinger stated.

In the first quarter alone, tariffs on Canadian aluminum cost Alcoa nearly $20 million. Additionally, the company relies on Chinese suppliers for some input materials and expects tariffs on China to raise annual costs by $10 million to $15 million, citing a lack of viable alternative sources.

Despite these challenges, Oplinger emphasized the critical role of Canadian aluminum in the U.S. supply chain. He noted that even if all idle U.S. smelting capacity were restarted, the country would still face a 3.6 million metric ton shortfall. “Until additional smelting capacity is built in the U.S., the most efficient aluminum supply chain is Canadian aluminum flowing into the country,” he said.

The tariff-related costs come amid broader volatility in global trade policy, with Alcoa highlighting the need for stable cross-border commerce, especially with key partners like Canada. The company’s financial outlook is being reshaped as it navigates rising input costs and supply chain constraints in an increasingly protectionist trade environment.

Alcoa’s warning underscores the ongoing strain on the aluminum industry as tariff pressures continue to mount, particularly on North American producers reliant on cross-border trade.