The Aluminium Association of Canada (AAC) has condemned the U.S. government's move to impose a 50% tariff on Canadian aluminum, calling it a protectionist misfire that risks destabilizing North America's integrated manufacturing base and driving higher inflation across key sectors.

"A 50% tariff on Canadian aluminum will suppress demand across the continent -- whether the metal is produced in Canada or the U.S.," Jean Simard, AAC's president and CEO, said in a press release.

"It will impact workers on both sides of the border and disrupt key sectors including defense, construction, and automotive," he stated.

The tariff, enacted last Wednesday following an executive order from President Donald Trump, effectively prices Canadian exports out of the U.S. market at $1,349.50 per metric ton. Simard warned that the move may force Canadian producers to reorient trade toward the European Union and away from their most critical industrial partner.

Food packaging is among the industries most exposed to these tariffs, as large companies such as Campbell Soup (NASDAQ:CPB) and Coca-Cola (NYSE:KO) heavily rely on aluminum for their products.

The domestic Can Manufacturers Institute (CMI) also responded to Trump's decision, pointing out how aluminum and tinplate steel tariffs would hurt American families.

"Doubling the steel tariff will further increase the cost of canned goods at the grocery store," CMI president Robert Budway said on May 30. "These metal tariffs put our nation's food security at risk."

Nine domestic mill production lines have closed since the original 2018 tariffs on tin mill steel, leaving only three operational facilities. Thus, the domestic industry relies on roughly 80% of tin mill steel imports and a significant portion of aluminum.

Canada annually ships 2.7 million metric tons of aluminum to the U.S., much of which is transformed into beverage cans, canned food containers, and consumer packaging.

That raw material supports over 700,000 American manufacturing jobs, while Canada's aluminum sector directly employs 9,500 workers. Combined, the binational aluminum value chain contributes more than $228 billion annually to the U.S. economy.

Thanks to its abundant hydropower, Canada produces low-carbon aluminum at a cost and emissions profile that is far below that of many of its global competitors. That energy benefit is enormous -- equivalent to 40 million megawatt-hours per year, or the annual output of four Hoover Dams.

Simrad noted that the Canadian industry supports the U.S. goal of increasing domestic aluminum production capacity from 50% to 80% of national demand, but added that tariffs undermine the investment certainty needed to build that capacity.

"Even if U.S. output doubles, it will still be a net importer," he said.

Instead, the AAC and CMI urge the U.S. to target the real threat: subsidized overcapacity from China. Canada already leads the world in aluminum traceability and anti-dumping enforcement. "Canadian aluminum is not -- and will not be -- a backdoor for unfair trade," Simard stated. "Undermining a trusted partner only weakens the foundation we both stand on."

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