Joly expects aluminum sector to receive ‘hundreds of millions’ in tariff relief

Quebec’s Aluminum Sector to Receive “Hundreds of Millions of Dollars” from Tariff Relief Fund

Industry Minister Mélanie Joly has announced that Quebec’s aluminum sector is set to benefit significantly from a $5 billion fund aimed at supporting industries impacted by U.S. tariffs. With nearly all of Canada’s aluminum production concentrated in Quebec, Joly emphasized the importance of ensuring that the province receives its fair share of the fund.

During a press conference in Montreal, Joly stated, “The Quebec aluminum sector will get its fair share. And we believe that with the projects that are being discussed right now with Alcoa, with Rio Tinto and with Alouette, it’s hundreds of millions of dollars.”

The federal government has yet to finalize the distribution of the fund among affected sectors, but Joly’s comments suggest that Quebec’s aluminum industry is in line to receive a significant portion of the financial support.

Challenges Faced by Canadian Aluminum Producers

Canadian aluminum and steel exports are currently subject to 50 per cent U.S. tariffs, posing significant challenges for the country’s producers. Jean Simard, president of the Aluminum Association of Canada, highlighted the importance of tariff relief in maintaining the competitiveness of the sector.

While Canada does have export markets in Europe and Asia, the majority of its aluminum is exported to the U.S. In 2024, Canadian producers exported 90 per cent of the 3.3 million tonnes of aluminum they produced, with the majority of that going to the U.S.

Simard explained that Canadian producers had to increase shipments to Europe over the summer due to losses incurred from U.S. exports. Despite efforts to diversify into other markets, the U.S. remains a crucial market for Canadian aluminum.

Future Outlook for the Canadian Aluminum Sector

Looking ahead, Simard acknowledged the potential for growth in European and Asian markets but emphasized the importance of maintaining ties with the U.S. market. He warned that if Canadian producers were to halt shipments to the U.S., other companies would step in to meet demand.

As discussions continue on the distribution of the tariff relief fund, Quebec’s aluminum sector stands to benefit significantly from the financial support. The government’s commitment to supporting industries affected by tariffs will be crucial in ensuring the continued competitiveness of Canadian aluminum producers on the global stage.