About 60 per cent of aluminium used in the U.S. comes from Quebec, but President Trump just whacked it with a 25-per-cent tariff
Aluminerie Alouette says these two things are “distinct files”, but the uncertainty in the aluminum industry is very real after the president’s executive order.
In Quebec, 2.9-million tons of aluminum are produced each year employing 38,000 people. The vast majority of those, 80 per cent, aren’t with huge multinational corporations, but 1,734 smaller processing companies
Small businesses are largely dependent on the American market. The revenue from aluminum processing amounts to $11.6 billion, according to AluQuébec, the association that represents the industry.
“If we’re talking about 25 per cent and it’s something that eventually lasts, there are buyers who will start to be motivated to try to find cheaper solutions elsewhere or, in some cases, also solutions that are made with other materials that cost less,” said François Racine, the chief executive officer of AluQuebec.
A major player like Aluminerie Alouette, which produces more than 630,000 tons of primary aluminum each year, may not be planning any changes to its production this year. It says the jobs of its 950 employees are still assured.
“Depending on the upcoming decisions on the American side, several markets, other than the United States, are also available for our aluminum,” said the company in a statement Monday evening.
Politicians and industry players in the province are perplexed by Trump’s tariffs on aluminium imports that are so vital to the American market. Quebec aluminum shows up in American beer cans, computers, roofing and car parts.
He said he intended to “bring back” over 100,000 steel and aluminum jobs to the U.S.
“We are being pummelled by both friend and foe alike and our nation requires steel and aluminum to be made in America not in foreign lands,” he said.
But the argument that the U.S. industry can pivot quickly to build plants and start producing enough aluminum to supply its domestic market is flawed, says the United Steelworkers Union.
“An aluminum smelter is a lot of investment; it takes a very large energy block which the United States does not have. We have the advantage of having hydroelectricity and that is the reason why aluminum smelters are mainly in Quebec,” said Nicolas Lapierre, the assistant to the director of the United Steelworkers Union in Quebec.
The union has about 2,500 members who work directly in the aluminum sector.
“People are a little on edge and then we are in a bit of slow motion. That is what creates instability and incomprehension,” added Lapierre.
The union has strongly denounced the U.S. administration’s decision, calling on the federal government to take “immediate and vigorous retaliatory action”. It has also called on Ottawa to provide support for affected workers, “including emergency income support, improved access to Employment Insurance to help families cope with the economic fallout.”
The federal government is reportedly reviewing the White House decision and has not provided an immediate response.
Bloc Québécois Leader Yves-François Blanchet has insisted that Quebec’s aluminum “cannot be replaced” and that there will be “little effect” in the province. But others aren’t as optimistic.
“Both for the manufacturing SMEs (small and medium-sized enterprises) with whom we work and for the larger players, as soon as there is uncertainty or unpredictability, it’s certain that we put all investment projects on hold,” said Racine.
National Post
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