Tuesday, October 28, 2025

Major Aluminum Investment Signals Confidence Despite US-Canada Trade Dispute

A Rio Tinto-backed aluminum company will commit $1.1 billion toward facility modernization in Quebec as Canada’s aluminum sector navigates escalating trade tensions with the United States.

Aluminerie Alouette announced plans to upgrade its Sept-Îles smelter after securing a new electricity agreement with Hydro-Quebec. The announcement comes as President Donald Trump doubled import duties on Canadian aluminum to 50% in June.

Canada announced protective measures on June 19, warning it may raise counter-tariffs by July 21 if trade negotiations stall. “We will adjust our existing counter-tariffs on steel and aluminum products on July 21, to levels consistent with progress that has been made in the broader trading arrangement with the United States,” Finance Minister François-Philippe Champagne said.

Read: Canada To Adjust Steel Tariffs Against US On July 21

The dispute threatens a vital trade relationship — Canada provided 56% of all US aluminum imports during 2023, representing 3.08 million tons. Trade disruptions are pushing Canada to redirect exports toward European markets.

Quebec produces 70% of North American aluminum, according to Quebec Economy Minister Christine Frechette. Alouette runs Canada’s largest smelter, producing approximately 623,000 metric tons annually. The operation employs 900 people and features joint ownership by Rio Tinto (40%), AMAG Austria Metal AG, and Norway’s Hydro Aluminium.

Canada’s aluminum sector supports 29,500 jobs across nine facilities and generated over $12 billion in exports before the trade dispute. The industry was valued at $9.59 billion in 2023.

Ottawa has established a $10 billion loan facility for affected businesses and is implementing procurement policies favoring Canadian suppliers. Trade negotiations between Prime Minister Mark Carney and Trump broke down in late June, with Trump ending discussions over Canada’s digital services tax. 

Canada subsequently scrapped the tax to avoid higher tariffs, but the July 21 deadline for potential Canadian counter-tariff adjustments remains.



Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Goliath Resources Drills 10.72 g/t Gold Over 7.83 Metres At Surebet

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Related News

Appetite for Apatite: Quebec Adds Apatite to Critical Minerals List

Quebec has unveiled its ambitious 2023-2025 Action Plan, building upon the Quebec Plan for the...
Wednesday, January 24, 2024, 03:01:00 PM

Trump Jacks Up Tariff On Canadian Steel & Aluminum To 50%

President Donald Trump has escalated his trade dispute with Canada by announcing an additional 25%...

Tuesday, March 11, 2025, 10:51:11 AM

Canada Issues LGBTQ+ Discrimination Travel Advisory For US

Canada has taken a proactive step to enhance its international travel advisories, focusing on safeguarding...

Wednesday, August 30, 2023, 10:14:38 AM

Canada Aligning With Europe’s Military Circle Amid Tensions With US

Canada is reportedly on the verge of a landmark agreement to collaborate with the EU...

Thursday, March 20, 2025, 10:18:00 AM

Trump’s 25% Tariffs On Canada And Mexico Are Coming Tomorrow; Oil Tariffs To Be Decided Tonight

US President Donald Trump has signed the blanket 25% tariffs he promised to impose on...

Friday, January 31, 2025, 09:49:01 AM