Alcoa, the largest aluminium producer in the United States, has reported that tariffs on imports from Canada cost it $US115 million ($176 million) in the second quarter. The company’s experience highlights the impact of former US President Donald Trump’s trade policies on the aluminium industry. Alcoa redirected Canadian-produced aluminium to customers outside the US in an attempt to mitigate the additional tariff costs, the company stated on Wednesday (Thursday AEST) as it reported earnings that surpassed analyst expectations. Alcoa is a global industry leader in bauxite, alumina, and aluminium products. The Pittsburgh-based company aims to offer sustainable solutions to its customers.
The latest tariff toll is significantly higher than in the first quarter, when Alcoa reported an additional cost of $US20 million due to tariffs, which were then at 25 per cent. Metal producers across the board are adjusting to trade uncertainties after Trump increased tariffs to 50 per cent in June, as part of an effort to revive domestic production within the industry.
Rio Tinto Group, another major player in the mining sector, also disclosed on Wednesday that tariffs had resulted in costs exceeding $US300 million in the first half of the year for its Canada-made aluminium. The increased tariffs have broadly affected companies that rely on aluminium imports.
The costs incurred by both Alcoa and Rio Tinto highlight the financial consequences of the trade measures, demonstrating the challenges faced by companies operating in the global aluminium market.
