Quebec Premier Francois Legault has proposed that Canada consider imposing export taxes on aluminium to negotiate effectively with the US administration, reported Bloomberg.
The suggestion comes in response to President Donald Trump’s recent executive order imposing a 25% tariff on all steel and aluminium imports, which could impact Canadian producers.
The tariffs, authorised under Section 232 of the Trade Expansion Act, aim to increase US production and job creation, according to President Trump.
Canadian producers depend heavily on the US market, which accounted for more than 90% of aluminium-related exports in 2024, valued at C$15.9bn, according to Statistics Canada.
Royal Bank of Canada assistant chief economist Nathan Janzen stated that Canada’s trade balance in steel and aluminium products was C$14bn in 2024, with the aluminium trade contributing C$11bn.
The Aluminum Association of Canada highlighted that nearly 4% of Quebec’s manufacturing payroll is dependent on the aluminium industry.
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By GlobalDataThe association’s CEO, Jean Simard, said Quebec’s production could potentially be shipped to Europe instead if higher prices affect US demand.
However, concerns have been raised about the negative effects on US manufacturers due to higher input costs.
John G Murphy, an executive at the US Chamber of Commerce, said that the competitiveness of American manufacturers “will suffer” from the tariffs.
“The number of American workers who would stand to benefit from a 25% tariff on aluminium imports are outnumbered 177-to-1 by American workers employed in downstream industries who would be harmed by the tariffs,” Murphy mentioned in a social media post.
Murphy said that with approximately 10.7 million workers in industries that use aluminium, the tariffs could have widespread consequences.
Murphy added: “If implemented, these tariffs will add substantially to the costs of US manufacturers, whose competitiveness will suffer. But the legal claim behind these Sec. 232 tariffs that aluminium imports from Canada ‘threaten to impair the national security’ of the US is wrong.”
Janzen noted from past experiences that US companies often bear the cost of such tariffs, particularly in specialised sectors where finding alternative suppliers is challenging.
